Housing coops protest conversion fee

Freehold conversion fees for Occupancy Class-2 plots set at 25 percent; residents argue for two percent

geetanjali

Geetanjali Minhas | October 3, 2018 | Mumbai


#MHADA   #Maharashtra colonies   #Mumbai housing   #Occupancy Class-2  


Residents of some 25,000 housing colonies across Maharashtra are protesting a 25 percent fee for converting 'Occupancy Class-2' and lease-hold land to freehold land.

On September 25, the Maharashtra government decided to convert the plots allotted to these cooperative housing societies from 'Occupancy Class-2' to 'Occupancy Class-1', or freehold land. It set the fee at 25 percent of the current valuation of such land in the government's ready reckoner (RR).

Residents of these colonies say this is exorbitant. They argue that a two percent fee would be fair, since these are residential and not commercial properties. They give this example: if the RR rate is Rs 1 lakh per square metre, then for a flat of 500 square feet (about 46.5 square metres), at 25 percent the fee works out to about Rs 11 lakh, and if the RR rate is Rs 2 lakh, the fee works out to about Rs 22 lakh.
 
Most of these plots – there are 3,000 in Mumbai alone - were given to housing cooperatives formed by people from the middle and lower income groups more than 40 years ago. They were charged prevalent rates and they built flats for their members. Over the years, many house owners sold their flats or rented them out without following government procedure and paying transfer and conversion fees. The current owners want to rebuild the aged apartment blocks. They cannot do it without paying the 25 percent fee.
 
"The residents are now old and retired. Most of them have life savings of Rs 25 lakh or so. The fee works out to be huge. In many colonies, the per member the charges can be anywhere between Rs 5 lakh and Rs 10 lakh, and the cooperatives won't have the capacity to come up with the crores these will add up to," says Salil Rameshchandra, president of the Federation of Grantees of Government Lands (Association of Persons). He says these plots were originally swamps and it was the cooperatives that worked to make the area inhabitable, building homes and infrastructure that cost hundred times the original purchace price of the land.
 
Residents say the government has not distinguished between Occupancy Class-2 land and lease lands and has applied the same rate to both. The government now wants to treat these lands on par with MHADA or CIDCO lands and vest ownership of these lands with them. Occupancy class 2 lands have the status of ownership with certain riders. The property card is in the name of occupant, which means that the right, title and interest is vested with the occupant and not the government.

Comments

 

Other News

India ramps efforts as COVID-19 cases rise

As COVID -19 cases continue to rise amid a 21-day lockdown, the centre and the states are proactively taking measures to provide aid to the underprivileged and the needy during this unprecedented situation.         By Sunday morning, India had registered 27

Diplomacy in the time of Covid-19

In the thick of battle with the deadly coronavirus, India on March announced a 21-day lockdown till April 14 in its bid to control the spread of virus which has so far led to 10 people’s death and over 600 others falling sick across the country. As per experts, India, which is in the second stage of

Life hacks for Lockdown blues

As the nation battles the Coronavirus outbreak, a billion-plus population is confined at home in the 21-day lockdown, and this is leading to mental health concerns. “It is a tough time and we need to be stable to get thorough. People must rationalise their irrational thoughts without

Doctors, others continue to face vigilantism

Scare following the outbreak of Covid-19 has led some people to turn to vigilantism, harassing people at the frontline of fighting the disease and keeping the country running amid the lockdown. Earlier this week, the medical associations had made representations before home minister Amit Sha

Covid19, lockdown, legal profession: Grief, justice & contingency plans!

Sixteenth March at Hammurabi & Solomon Partners was a usual Monday at work with colleagues starting the week on a turbo-mode. But this Monday was different. It had something unusual about it. A sense of uncertainty kept struggling to look ahead on how the days ahead would flow. Despite



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter