MUMBAI/NAGPUR: The Maha Vikas Aghadi (MVA) government’s stay on a policy decision taken by its predecessor comes as a setback to around 3,000 housing societies in Mumbai and 19,000 across the state.
Last year, the Devendra Fadnavis-led government had allowed government land given on lease to these societies to be converted into freehold land, thereby giving virtual ownership rights to these societies. The housing societies could get this conversion done by paying a premium to the government based on the ready reckoner rates. The premium was lower for residential purposes and higher for commercial and industrial users.
Housing societies on collector land had petitioned the state in 2014 to allow conversion of their Class-II occupants to Class I.
While a Class II land is leased out by the government for housing, commercial, educational and other purposes, Class I is freehold land, which can be exploited by the occupants to its full development potential.
In a December 10, 2020, circular, the revenue and forest department directed all collectors to stop giving freehold (conversion from Class II to Class I) status to government leasehold lands across the state.
In Mumbai, lands belonging to the collector were leased out at concessional rates for residential and educational purposes. In other parts of the state, they were leased out in urban as well as rural areas for agriculture.
Revenue minister Balasaheb Thorat told TOI on Saturday the decision to convert collector’s land to freehold land was stayed because a review found it did not benefit the needy. “A few people were taking advantage of the clauses and we found the clauses in the earlier government order had several anomalies.” The minister told TOI the state government will study it and the stay was “temporary”. He said the earlier order had also indirectly affected the state’s revenue collection.
Senior officials justified the stay, saying there was a lukewarm response to the 2019 decision due to high premium charged on residential users, which was also a reason for staying the decision. A more streamlined policy will be worked out soon, they added. Government officials said a new government resolution will be issued for societies with a common premium percentage for conversion so that there is no discrimination.
Meanwhile, Fadnavis said he had been trying to bring in changes since 1999. “It was the policy of the British to keep Indians Class-II holders or ‘bhoomidhari’ and not ‘bhoomiswami’. I had even moved a private member bill while I was in the Opposition. Hence, when I got the opportunity as CM, we moved a proposal before the cabinet and made necessary amendments and took this decision to convert Class-II lands to Class-I. Even earlier, land conversion was permitted but bureaucratic hurdles and corruption created hardship for the people,” he said.
Housing expert Chandrashekhar Prabhu said, “The stay will have serious implications in Mumbai.” He, though, said some loopholes need to be plugged. “Apparently, some plots allotted for commercial purpose managed to get converted by paying residential premium rates, depriving the revenue legitimately due to the government. When the illegalities were exposed, the government stayed the GR.”
(With Nisha Nambiar in Pune)