FGGL writes to CM for extension of concession period on premium discount on lease land conversion to freehold
To encourage redevelopment initiatives among older residential housing societies, he proposed extending the concessional period for a period ranging from three to five years.
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CM Eknath Shinde. (File photo)The Federation of Grantees of Government Lands (FGGL) has urged the Chief Minister’s Office to extend the concession period on premium payment for converting leasehold properties to freehold for co-operative housing societies involved in self-redevelopment and redevelopment through builders.
In a letter addressed to the Chief Minister by Vikramaditya Dhamdhere, general secretary of FGGL highlighted that while the concessional period offering a discount on premium payments was issued on March 16, 2024, it is slated to expire on September 30 this year.
The six-month window, he argued, is insufficient to facilitate the application process for interested societies. To encourage redevelopment initiatives among older residential housing societies, he proposed extending the concessional period for a period ranging from three to five years.
Under the current provisions of Maharashtra’s revenue department, co-operative societies opting for self-redevelopment are required to pay a premium of 5% based on the prevailing Annual Statement of Rates while societies opting for redevelopment through developers have to pay a premium of 10% on the annual rate of the land.
Additionally, the notification stipulates that in cases where additional floor space index (FSI) is available beyond the original building’s FSI, cooperative housing societies must allocate 25% of this additional FSI at government rates to beneficiaries under the Pradhan Mantri Awas Yojana. Failure to comply with this provision within the specified timeframe could result in forfeiture of the premium paid and restoration of the land to its original tenure status.
Furthermore, co-operative housing societies choosing self-redevelopment must commence the process within two years from the date of the order converting the land to freehold property.
Dhamdhere also appealed to the CM in his letter to initiate the process through an online portal to ensure transparency.
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