In a bid to generate more revenue from its leased properties, especially in the ‘W’ category, the state government has increased lease from Rs 40-100 per sq ft to Rs 2,000 per sq ft. The urban development department has come up with a new policy for leased properties in ‘schedule W’. The new lease rate will be applicable to the properties like Mahalaxmi racecourse, sports gymkhanas at Marine Drive etc. The plots were earlier leased at nominal rates, will now be given at current ready reckoner rates in the city.
The ‘schedule W’ properties belong to the State Government. In the BMC jurisdiction, there are 164 such plots at prime locations, which have been given on lease to several institutes for recreational, education, residential, commercial and industrial purpose
at nominal rates. They include lease agreements from 20 years to 99 years. While many of these agreements have not been renewed, the lessees have continued to occupy the land.
The new policy has approved renewal of the properties by charging the new rate. “The ready reckoner rates will be decided by the Revenue Department every year. The lease amount will change every five years based on the market rate. Of this, 70 per cent lease amount will be shared by the State Government, whereas 30 per cent will be given to the municipal corporation,” the policy stated.
The policy has also made a provision to impose fine on those not paying lease amount within stipulated time period. “If the lease is not given within the stipulated time then 18 per cent extra fine will be levied,” the policy mentioned. It has also asked the BMC to send a few cases to the state government directly before renewal of the lease if the said norms are violated. It has given permission to the BMC to renew lease in case of FSI norms are violated, partial change in use of the land and sub leasing the land.
However, the cases in which the purpose of the land use has been changed completely should be sent to the state government. “Mahalaxmi Racecourse and various gymkhanas lease renewal should be refer to the state government,” the policy added.
The new policy has came in the backdrop of cases in which lease agreements dating back to 1970 have not been renewed.
