State mulls formula to transfer lease property into freehold

In a bid to increase revenue of the state by way of selling land and properties that are being used under the Lease Act, the state revenue department is working on ways to transfer a lease property into freehold.

A committee headed by principal secretary Manukamar Srivastava has been set up to finalise the formula.

On the other hand, Mumbai city collector has appealed to 691 property owners who lease has expired to renew their agreement or their property will be taken back.

Former revenue minister Eknath Khadse claimed that transfer of leased land to freehold would help earn over Rs 50,000-crore for the state exchequer.

“I took several decisions during my tenure that will change the scenario of the department. However, the Government Resolution (GR) of many decisions that had been taken is yet to publish,” said Mr Khadse.

The state government has approved amendment in section 29 of the Maharashtra Land Revenue Code 1966 on February 17 2016 and later the bill was passed in last budget session. According to this amendment, state has the power to transfer the leased land into freehold by applying certain penalty from the lessee.

Manukumar Srivastava, principal secretary of revenue department, said there are 1,291 properties in island city that are given on lease for 999 or 99 years.

Out of this 691 property holders’ lease has already expired.

“We’ve taken the initiative to either make these lessee permanent owner or if they don’t need it, we will take its possession,” said Mr Srivastava.

When asked what the lessees have to pay to the revenue department, Mr Srivastava said, “It is yet to be decided. First we will decide which lease properties should be transferred as freehold. There are some hospitals to which state have given land for social purpose. If we transfer the land of the hospital on freehold basis, we will loose our 20 per cent free beds quota meant for poor patients,” Mr Srivastava said.