Govt to allow conversion of leasehold land to freehold at 25% above the ready-reckoner rate
Freehold means the individual, cooperative housing society, or industry becomes the owner after paying a percentage of the Ready Reckoner (RR) rate as premium to the government.
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As per the new rates, individual or private landholders and companies holding Class II land for residential purposes will need to pay a premium of 15 per cent of the ASR.
The Maharashtra government issued a final notification allowing the conversion of leasehold lands and occupancy class II land to freehold status upon payment of premium of up to 25 per cent of the Annual Statement Rates (ASR) or Ready Reckoner rates of the land area.
The gazette notification, released by the revenue department on March 4, outlines revised premium rates applicable until December 31, 2025.
As per the new rates, individual or private landholders and companies holding Class II land for residential purposes will need to pay a premium of 15 per cent of the ASR.
While occupancy Class II lands are those where the ownership comes with restrictions, leasehold lands are government owned and leased to private persons, cooperative housing societies or industries.
Freehold means the individual, cooperative housing society, or industry becomes the owner after paying a percentage of the Ready Reckoner (RR) rate as premium to the government.
Co-Operative Housing Societies (CHS) on Occupancy Class II land will be required to pay a 10 per cent premium, while self-redevelopment projects on occupancy class II land undertaken by the housing societies will enjoy a reduced 5 per cent premium.
Additionally, leasehold residential land will be converted to freehold at 25 per cent of the ASR rate.
However, Vikramaditya Dhamdhere, General Secretary of the Federation of Government Grantis Lands (FGGL), raised concerns over exclusions and procedural shortcomings in the notification.
“The notification makes no mention of leasehold lands held by Cooperative Housing Societies, which means they are deprived of the 10 per cent and 5 per cent premium benefits available to CHS on Occupancy Class II land,” he said.
Dhamdhere further criticised the limited timeframe for submitting suggestions or objections to the draft notification. “The government published the initial notification on February 20 and allowed only five working days—until March 2—for citizens to submit their objections and suggestions,” he stated.
Additionally, the FGGL has raised concerns over the restricted duration for applying under the scheme. “The government has set the application period for freehold conversion concessions at just 10 months, until December 31, 2025. This is inadequate and unfair to long-standing residents,” Dhamdhere added.
Dhamdhere also emphasised the need for urgent reforms to benefit residents who have been living on government-granted land for decades.
“These changes could impact nearly 2 million families residing in thousands of Cooperative Housing Societies on Occupancy Class II and leasehold land for the past 50-60 years,” he stated.
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