Mumbai housing societies oppose conversion of real estate at hefty premium

Mumbai housing societies oppose conversion of real estate at hefty premium
26/09/2018 , by , in News/Views

The residents of 3,000-odd housing societies built on government allotted land across Mumbai are a disappointed lot as state cabinet approved the proposal to levy 37.5 per cent premium of ready reckoner rate to convert class II land into freehold land.
The societies’ representatives say the government decision is simply not workable and it is bound to fail and create roadblocks in redevelopment of housing societies.

There are over 20,000 such societies spread across the state out of which around 3,000 are in Mumbai. The state government allotted land to many cooperative housing societies in and around Mumbai between 1950s and 1980s to promote “cooperation movement” in the state. However, these societies were not given status of class I (freehold) occupants of the land and instead classified as class II.

The committee submitted its report to government which was taken in the cabinet on Tuesday. The committee had recommended 50 per cent premium. However, after much deliberation cabinet agreed upon figure of 37.5 per cent premium, said a senior official from chief minister’s office.

Salil Rames chandra, President of Federation of Government Land Alottees, said, “This is completely bureaucratic decision and we will fight it both legally and politically. If bureaucrats are going to run government, why we elect people’s representative. We will soon call meeting of members of association and decide future course of action.”

He further said, “This is complete injustice to us, when government allotted land to us, we paid at that time’s market rate or ready reckoner rate, why should we be asked to pay such a hefty premium?” he asked.

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