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

Cast your vote, not vote for caste

Once the schedule for the next assembly elections has been announced, there is a flurry of activity around building caste coalitions. This is more intense in the most populous state,  Uttar Pradesh, which is the most important state in India in any election, in view of its large population estimated a

Maharashtra cities dominate Smart Cities Mission #Streets4People Challenge

In a competition organised by the Ministry of Housing and Urban Affairs (MoHUA), Pune, Pimpri-Chinchwad, Nagpur and Aurangabad from Maharashtra are among the 11 cities selected for scaling up their pilot projects and creating permanent public infrastructure. #Streets4People Challenge was org

CNC, Admiral R Hari Kumar condoles deaths of three navy personnel

The three Navy personnel who succumbed to injuries caused by an explosion on board Indian Navy`s destroyer ship INS Ranvir have been identified as Krishan Kumar MCPO (master petty chief officer)I, Surinder Kumar MCPO II & AK Singh MCPO II. In a condolence message, Admiral R Hari Kumar s

Two Indias: One for the billionaires, one struggling for minimum wages

Oxfam India has this week released ‘India Supplement 2022’ with deserving caption ‘inequality kills’. The supplement discusses India’s governance structures that promote the accumulation of wealth by a few, while failing to provide safety netsto the rest of the population. The

Aditya Thackeray launches 2 Oxygen cylinder recharge points

After the oxygen crisis faced during the second wave of Covid-19, the BrihanMumbai municipal corporation (BMC) has now set up its own medical oxygen cylinder recharge projects.   On Tuesday, guardian minister Aditya Thackeray launched two of the BMC’s new medical oxygen cylinders r

How inequality keeps rising amid pandemic – and is killing people

The world’s ten richest men more than doubled their fortunes from $700 billion to $1.5 trillion (at a rate of $15,000 per second or $1.3 billion a day) during the first two years of a pandemic while the incomes of 99 percent of humanity fall and over 160 million more people forced into poverty. A new

Visionary Talk: Farmer`s Agitation, Rakesh Tikait with Kailashnath Adhikari


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter