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.

Image Source

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

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..