State relief for residents of 368 leasehold plots in the island city

MUMBAI: The state government has approached residential tenants of 368 leasehold plots in the island city, whose leases have lapsed and whose lessees are untraceable, to get the land transferred to their names by paying the renewal fees.

Of the 1,200 odd plots given on lease in the island city, the leases of 691 have lapsed. Though 323 lessees have approached the state for renewal of the leases, 368 have either died, shifted or are not interested. As most of these lands house residential buildings whose redevelopment has halted owing to lapsed leases, the state wants the plots to be transferred to the occupants. “Most of the 368 properties have housing societies with tenants . If the societies or the tenants agree to pay the renewal fees, which is 2% on the 25% of the cost of the property in case of residential use, the lease can be renewed. This would help them in going for redevelopment,” said Mumbai city collector Shivaji Jondhale.

Experts however said the annual lease was not affordable. “The deal is not feasible for most societies. If a tenant occupies a 1,000-sqft area, they will have to pay ₹1.25 lakh per annum towards lease rent at the rate of 2% of 25% of the property value, at the least property rate in south Mumbai,” said Ramesh Prabhu, town planning expert.

Once transferred to the society‘s name, the plots can later be converted to freehold from Class II properties. “The societies can go for the conversion to freehold property with absolute ownership by paying 25% of property value as premium,” said a state revenue official. According to officials, though the state decided to allow the conversion recently, the order may take at least two months.

THE RELIEF IS FOR THOSE TENANTS WHOSE LEASES HAVE LAPSED AND TENANTS ARE UNTRACEABLE