Times of India: Mumbai: Monday, 18Th August
2025.
Not a single housing society in Mumbai on govt land has opted for self-redevelopment, information obtained under the Right to Information Act has revealed.
There are 3,000
cooperative housing societies in Mumbai city and suburbs on land leased either
by the govt or collector's land, called occupancy class II.
Salil Rameshchandra, president of the Federation of Grantees of Govt Land (FGGL), who sought information on the conversion of land to freehold under the RTI Act, said last year the govt came up with a concessional scheme reducing the premium to be paid for conversion to freehold. Under the 5% concessional scheme, housing societies are required to pay only 5% of the Ready Reckoner (RR) rate for conversion if they opt for self-redevelopment and ensure it is undertaken within two years of the conversion.
Further, 25% of the additional area is to be given to the Pradhan Mantri Awas Yojana. If residents fail to implement the scheme within two years, they are given another two years' extension, but thereafter the land goes back to its original status, and the housing society stands to forfeit the amount paid.
"It is clear that this scheme is ill-conceived and is impractical; hence, it has remained only on paper," said Rameshchandra.
A number of housing societies have come forward for the second concessional scheme of paying 10% of the RR Rate as a premium for land conversion to freehold. The RTI information shows that six housing societies opted for the conversion when the premium was 15% (prior to March 2024), and 62 societies have opted for it after the govt reduced the premium to 10%.
Rameshchandra said the low response is owing to several reasons, such as residents of most housing societies on govt land are either middle-class or low-income senior citizens, and the amount is too large to pay. "The conversion to freehold also requires clearing of violations, especially membership transfer approvals. The red tape and corruption also create their own problems," he said.
Not a single housing society in Mumbai on govt land has opted for self-redevelopment, information obtained under the Right to Information Act has revealed.
Salil Rameshchandra, president of the Federation of Grantees of Govt Land (FGGL), who sought information on the conversion of land to freehold under the RTI Act, said last year the govt came up with a concessional scheme reducing the premium to be paid for conversion to freehold. Under the 5% concessional scheme, housing societies are required to pay only 5% of the Ready Reckoner (RR) rate for conversion if they opt for self-redevelopment and ensure it is undertaken within two years of the conversion.
Further, 25% of the additional area is to be given to the Pradhan Mantri Awas Yojana. If residents fail to implement the scheme within two years, they are given another two years' extension, but thereafter the land goes back to its original status, and the housing society stands to forfeit the amount paid.
"It is clear that this scheme is ill-conceived and is impractical; hence, it has remained only on paper," said Rameshchandra.
A number of housing societies have come forward for the second concessional scheme of paying 10% of the RR Rate as a premium for land conversion to freehold. The RTI information shows that six housing societies opted for the conversion when the premium was 15% (prior to March 2024), and 62 societies have opted for it after the govt reduced the premium to 10%.
Rameshchandra said the low response is owing to several reasons, such as residents of most housing societies on govt land are either middle-class or low-income senior citizens, and the amount is too large to pay. "The conversion to freehold also requires clearing of violations, especially membership transfer approvals. The red tape and corruption also create their own problems," he said.
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