Mumbai residents appeal for lower premiums on Collector Land redevelopment

Mumbai residents living in buildings on approximately 8,000 plots of Collector Land are urgently seeking reduced premiums for converting their lands into freehold or ownership titles. Over 8 lakh families are affected by weak structures that require immediate redevelopment, and these conversions are essential for attracting builders and securing viable deals.

The Maharashtra government currently charges premiums of 15 to 25% on existing ready reckoner rates for such conversions, which residents argue are disproportionately high when compared to the 5% rate in Nagpur. They contend that offering the same 5% rate would benefit the state by generating substantial revenue of up to Rs 8,000-10,000 crore, attracting more real estate investments, and ensuring the safety of thousands of residents living in precarious structures.

The office sector has also been affected by the high premiums on collector land conversions. Many businesses operating from these buildings face challenges in maintaining their premises and attracting potential tenants. The additional financial burden of higher premiums discourages businesses from investing in infrastructure improvements, which can lead to further degradation of these properties.

Moreover, the issue of high premiums has intensified with the Maharashtra government's recent introduction of new conditions for converting collector's land to freehold land. Residents argue that these conditions, such as the requirement to complete construction within five years, are irrelevant and create unnecessary bureaucratic obstacles. Furthermore, they criticize the lack of public consultation before implementing these new conditions.

In response to these concerns, some experts and activists have proposed alternative solutions. They suggest that the government should consider offering lower premiums on a case-by-case basis, taking into account the specific circumstances of each society. Additionally, they recommend extending the deadline for land conversion to freehold, given the delays and hardships caused by the COVID-19 pandemic.

Officials from the Revenue Department have stated that societies can undergo redevelopment and sell their flats without converting to freehold land by paying minimal fees and obtaining permission from the collector. They have also argued that the 15% premium on ready reckoner rates is not unreasonable considering the concessional rates at which the lands were initially leased.

Despite these assurances, residents continue to demand lower premiums and the removal of the new conditions. The President of the Maharashtra Societies Welfare Association has suggested a 5% premium and the option to charge fees once the society goes for redevelopment. Representatives also feel that new conditions should be reconsidered and that public hearings should be held to address the concerns of affected residents.

In conclusion, Mumbai residents living in buildings on collector land are urging the government to lower premiums and reconsider new conditions for converting their lands into freehold titles. Addressing these concerns would not only boost real estate investments but also ensure the safety and well-being of thousands of families living in structurally weak buildings. The government should consider alternative solutions and engage in dialogue with residents to find a mutually beneficial outcome.

Next (Prestige Estates to Redevelop Shivshahi Co-Operative Housing Society in Mumbai's Worli)

Mumbai residents appeal for lower premiums on Collector Land redevelopment

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