Tenants of govt plots can get ownership

MUMBAI: Tenants of governmentowned plots will be able to get ownership by paying a premium, which will not be more than half the cost of the plot. In a move to increase its revenue, the state government has decided to grant ownership rights to lessees of government-owned plots and those with conditional ownership (class II).

This will be in exchange for a premium which is up to 50% of the ready reckoner rates — the value of the land in an area. While doing so, it has decided to keep premium rates same for residential and commercial use.

On Tuesday, the state government decided to allow conversion of three types of land allotted to individuals and cooperative housing societies as free hold (ownership rights) — residential, commercial and agriculture use. The policy could impact more than 1.14 lakh leased plots in state and around 5,000 in city.

Leasehold tenants pay the government rents as low as 2% to 5% of the 25% ready reckoner rate. The plot can be used only for activities permitted by the government. Plots under occupancy class II category gives conditional ownership to the lessee, who will not pay an annual rent. Here, too, the land can only be

used for activities the government allows.

A senior official from state revenue department said that for plots given on conditional ownership (occupancy class II), for residential or commercial use, the tenant will have to pay 50% of the ready reckoner rate. In case the plot is allotted for a lease of 99 years, the premium will be 50% of the ready reckoner rate. If the lease period is more than 99 years, then the premium will be 37.5% of the ready reckoner rate.

The state government has decided on 25% of the ready reckoner rate for cooperative housing societies even if the land was allotted on leasehold or on occupancy class II. It has set 50% of the ready reckoner rate for plots given for agriculture use, he added.