Real Estate

Maharashtra looking to sell leased land for filling coffers

Press Trust of India Mumbai | Updated on January 16, 2018 Published on October 07, 2016

Original target to raise ₹50,000 crore

The Maharashtra government is working on ways to transfer leased land into free hold, which would enable it to generate revenue by way of selling these plots that are currently registered under the Lease Act.

A committee, headed by state Revenue Department Principal Secretary Manukamar Srivastava, has been set up to finalise a formula for the transfer.

Mumbai City Collector has also appealed to the owners of land whose lease has expired to renew their agreement or else their properties would be taken back by the government.

Land revenue code

The state government had approved the amendment in Section 29 of Maharashtra Land Revenue Code-1966 on February 17, 2016, and the bill was passed in the previous Budget session of the state Legislature.

According to the amendment, the state has obtained the power to transfer lease land into free hold after imposing certain penalty charges on the lessee.

A revenue department official said there are 1,291 properties in the island city that are given on lease for 33, 66, 99 or 999 years, out of which the lease of 691 properties has expired.

“The Mumbai Collector has appealed to these lessees to renew (the agreement) or the government will take their properties back. We will either make these lessees permanent owners or take possession if they are not interested in the properties,” the official said.

Property transfer

The government will first decide which lease properties should be transferred as free hold, he said.

“There are some hospitals to which the state has given land for a social purpose. If we transfer the land of these hospitals to free hold, we will lose our 20 per cent free beds quota that is meant for poor patients,” he added.

The state’s former revenue minister Eknath Khadse, who took the decision on amending the Revenue Code-1966, claimed that this reform will help the government garner revenue of about ₹50,000 crore.

Published on October 07, 2016
This article is closed for comments.
Please Email the Editor