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In a significant development, the department of land and land reforms in West Bengal has issued a notification granting apartment owners in Kolkata's Eastern Metropolitan Bypass (EM Bypass) the authority to modify the status of their land from leasehold to freehold.
The announcement, made last week, empowers individual apartment owners to adjust the land status of their respective shares through a registered indenture submission to the land and land revenue department. This transition will necessitate a conversion fee equivalent to 15% of the current market value of the flat, as evaluated by the inspector general of registration.
Furthermore, the proclamation also facilitates the transformation of Kolkata Khasmahal Land, encapsulating residential terrain. Lessees of unsold and unclaimed parts will have access to similar privileges. According to sources familiar with the matter, numerous projects along the Bypass, including 6-7 premium developments initially constructed on vested land and subsequently leased to property developers, stand to benefit.
The sources estimate the number of such flats in the area to exceed 10,000. The long-standing request for conversion rights by apartment owners instigated this governmental decision. The shift from leasehold to freehold is expected to present substantial advantages to flat owners contemplating reselling their property.
The decision has received commendation from prominent stakeholders. Sushil Mohta, the president of Credai West Bengal, expressed his approval of the initiative, considering it a positive step. Likewise, Harsh Neotia, the chairman of Ambuja Neotia Group, affirmed that the modified policy would encourage further development.
Echoing similar sentiments, Siddharth Pansari, the president of Credai Bengal, described the decision as a significant milestone and emphasized its benefits for all stakeholders. Earlier this year, the urban development and municipal affairs department had issued a similar notification pertaining to residential and commercial plots in Salt Lake and New Town. The latest ruling extends to plots leased for 99 years or more by government organizations such as HIDCO, NKDA, and KMDA.
In conclusion, this change marks a pivotal shift in Kolkata's land reform policies, creating potential benefits for thousands of apartment owners. The ability to alter the land status from leasehold to freehold provides these individuals with greater flexibility and ownership rights. It remains to be seen how the property market in these premium areas will evolve in response to this transformation. The onus is now on property owners to determine whether the conversion fee aligns with their long-term plans for their properties.
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