Properties on land allotted on occupancy rights basis: Societies raise red flag over restrictions

Arguing that several housing societies on such land had undertaken several such transactions without the government’s permission, the Maharashtra cabinet had adopted a proposal last July, permitting ‘regularisation’ of such transactions on payment of fees and penalties. Following the cabinet nod, collectors of Mumbai (city) and Mumbai (suburban) districts began issuing notices, directing housing societies to pay up for the ‘regularisation’ of all such transactions. The collectors’ office also issued directives to registration officials directing them not to entertain any fresh transaction of this nature without intimation.

The housing societies are up in arms against the direction. Contending that the restrictions imposed were bad in law and uncalled for, Ramchandra said, “At the time of grant of the land, the government had imposed certain restrictions to ensure that such land were developed properly. Now that these are already developed, it is twisting the same conditions to browbeat the housing societies for revenue gains. Conditions like transfer fee for sale or the transfer of flats, and fees for mortgaging or renting a premises were never a part of the original agreements.”

Accusing the government of bringing back the old Jahgirdari system, he added, “The present government says it wants to promote Ease of Doing Business, but it is practicising inspector raj.” The societies have also opposed the condition that the collector’s nod should be procured before redevelopment of the land, while demanding conversion of the land tenures into ownership titles for the societies.