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Maharashtra cabinet clears lease renewal policy for government plots
ET Realty  |  July 25, 2019

TNN Mumbai

Senior revenue department officials said the government also decided that no lease will now be renewed for more than 30 years, and the rent will be revised every five years.

 

The cabinet on Tuesday cleared a lease renewal policy for government plots in the state, except in Mumbai.

 

Senior revenue department officials said the government also decided that no lease will now be renewed for more than 30 years, and the rent will be revised every five years. According to recent statistics, 1,843 plots have been given on lease. Of these, the lease of 776 plots has expired, but could not be renewed in the absence of a policy 537 plots were given for residential purposes, 285 of which have expired and were awaiting renewal.

 

Under the policy, the state will charge a rent of 2% of 25% of the ready reckoner value of the plots for residential use. For commercial and industrial, 4% and 5% will be charged as rent, respectively.

 

The rent has been fixed at 5% for commercial and residential use of a leased plot. In case there is a cooperative housing society, the rent will be 1%.

 

In case the new lease rent is lower than the original rent, an official said the original lease rent with a 25% increment will be charged.

 

The policy also outlines the procedure in case of a violation of the lease terms - the lease of such plots will only be renewed after the violator pays a premium to regularize the violation.

 

"Once the violation is regularized, the lease will be renewed," said an official. Also, the right to renew the lease has been given to the district collector. If the lessor fails to move an application for renewal before the lease ends, they will be charged a penalty of 0.1% of the 25% of the ready reckoner rate, besides the lease rent as per the new policy, said the official.

 

The cabinet also decided that the penalty for a delay in moving a renewal application for Mumbai will be reduced from 1% to 0.1% of the 25% of the ready reckoner rate.