High premiums hurdle to transform land ‘freehold’ in Maharashtra

15 Mar 2022 CW Team

The housing societies management on collector’s land across Maharashtra are hesitating to convert land as freehold due to high premiums for the conversion procedure.

The conversion scheme came into effect in March 2019, and it expires this year. Now, it would be on the current government if it wants to extend it or not.

According to an official, the state has more than 5,000 housing societies on Class II land or collectors land. However, not many people were ready for the conversion of land into the freehold category, a status that would do any redevelopment work.

The official said that the scheme has hardly seen any takers with premiums to the tune of up to 50%.

Though there is not much response from the societies, the state government would take the final decision regarding the scheme’s future.

Around 177 applications had been filed, but not implemented, with the societies not going ahead in the last two-year pandemic.

Ramesh Prabhu, Maharashtra Society Welfare Association (MSWA), said the current scheme is not helpful to the housing societies. The entire proposal needs to be reconsidered.

He said the response was poor because the basic premium charges varied from 15% to 50% of the RR rates, depending upon the class of properties.

Suhas Patwardhan, Maharashtra State Housing Cooperative Federation Vice-Chairman, told the media that the representative body of 1.20 lakh housing societies want a nominal premium should be charged, as it was pointless to have this scheme.

He said due to the pandemic any housing society couldn't pay such huge premiums for conversion.

The conversion scheme ended on March 8, and consumer groups fear that the government might raise the premium to 60% for housing societies and 75% for individuals.

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Also read: No construction work permitted after 10 pm in Mumbai

The housing societies management on collector’s land across Maharashtra are hesitating to convert land as freehold due to high premiums for the conversion procedure. The conversion scheme came into effect in March 2019, and it expires this year. Now, it would be on the current government if it wants to extend it or not. According to an official, the state has more than 5,000 housing societies on Class II land or collectors land. However, not many people were ready for the conversion of land into the freehold category, a status that would do any redevelopment work. The official said that the scheme has hardly seen any takers with premiums to the tune of up to 50%. Though there is not much response from the societies, the state government would take the final decision regarding the scheme’s future. Around 177 applications had been filed, but not implemented, with the societies not going ahead in the last two-year pandemic. Ramesh Prabhu, Maharashtra Society Welfare Association (MSWA), said the current scheme is not helpful to the housing societies. The entire proposal needs to be reconsidered. He said the response was poor because the basic premium charges varied from 15% to 50% of the RR rates, depending upon the class of properties. Suhas Patwardhan, Maharashtra State Housing Cooperative Federation Vice-Chairman, told the media that the representative body of 1.20 lakh housing societies want a nominal premium should be charged, as it was pointless to have this scheme. He said due to the pandemic any housing society couldn't pay such huge premiums for conversion. The conversion scheme ended on March 8, and consumer groups fear that the government might raise the premium to 60% for housing societies and 75% for individuals. Image Source Also read: No construction work permitted after 10 pm in Mumbai

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