March 14, 2024: The Maharashtra cabinet, on March 13, 2024, approved the plan to reduce the premium to be paid for the redevelopment of cooperative housing societies built on the collector leasehold land, according to media reports. The premium has been reduced to 10% of the ready reckoner value to obtain ownership of land and 5% of the ready reckoner value to obtain ownership in case of self-redevelopment. Earlier, the premium was 15% of the ready reckoner value.
This announcement comes as a major relief to over 8,000 housing societies in Mumbai, which have been built on the collector leasehold land. It will boost the redevelopment of over 8,000 cooperative housing societies in the city, especially those that are 50 to 60 years old. It will result in residents getting bigger homes.
According to an Indian Express report, in February 2024, the revenue department issued a circular regarding the payment of premium to make the leased land a freehold. In the recently held budget session of the state legislature, MLA Ashish Shelar sought to reduce the rates and increase the deadline to pay the premium from March 7 to March 31. The reduction in premium amount would result in more and more housing societies coming forward for redevelopment, he said.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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