Real estate players and corporations are looking for an EMI installation

Mumbai: Real estate players, co-operative housing societies and the Federation of Government Land Grantee Associations have requested more time for the payment of the premium for the conversion of the property to leasehold.

The President of the Federation of Government Land Concessionaires, Salil Rameshchandra, said that currently only 30 days are offered to make the payment. The government should provide more window periods by offering quarterly payment options, as people currently staying in these properties are mostly from the middle income group.

He added: “Converting leasehold property to freehold opens up many opportunities and eliminates the complications associated with government land. Obtaining government redevelopment approval is a tedious process. In addition, a freehold land title offers more credit opportunities for companies and developers than on leasehold land.

Anand Gupta, Chairman of the Housing and RERA Committee of the Builders Association of India (BAI), said that the increase in the premium amount for conversion of title deed of a leasehold in full property requires millions of rupees.

“Raising such a sum through a housing cooperative is a difficult task. Thus, there is a need to provide an EMI facility that will facilitate their work and the redevelopment properties will get a major boost,” he said.

The free press newspaper reported that the Maharashtra government led by Maha Vikas Aghadi (MVA) in the latest cabinet has extended the discount on conversion from leasehold to freehold to 15-25% from 60-70% for two years . The previous discount expired in March 2022.

Ramesh Prabhu, Chairman of Maharashtra Societies Welfare Association has also agreed and lobbied for the demand for a longer period and ease of payment of premiums to speed up the redevelopment projects.

The MVA government had extended notice of the draft gazette on July 5, allowing co-op housing corporations to pay 15%, non-co-ops 25% and commercial or individual leaseholder to pay 50% of premium charges on the ready-to-use conversion rate to freehold land from leasehold land.

The gazette is also called suggestions and objections until August 4 this year.

The free press newspaper reported that the new government of Eknath Shinde-Devendra Fadnavis could take a decision in case the percentage of the conversion bonus should be further reduced, as demanded by the federation of government land concessionaires, to 5%.

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