The Maharashtra government has taken a notable step to enhance property ownership rights by converting residential plots allocated by the City and Industrial Development Corporation (CIDCO) from leasehold to freehold. This decision is poised to affect plot owners in Navi Mumbai and other areas developed by CIDCO.
To facilitate the implementation of this directive, CIDCO has established a dedicated committee to oversee and review applications for these conversions.
This scheme is applicable to residential plots awarded through the tender process, CIDCO-built housing projects, and those allotted under the 12.5% and 22.5% land allotment schemes.
Eligible plot owners are required to submit an application and pay the prescribed conversion fees to begin the process. Upon approval, their leasehold title will be transformed into freehold, granting them complete ownership rights and simplifying the future transfer and financing of the property.
“In instances where unearned income recovery is specified in the original agreement, that amount will be collected in addition to the conversion fees,” CIDCO stated. “For plots allocated at subsidized rates, additional charges will be levied on top of the standard conversion fee.”
This initiative is optional and is applicable solely to plots with a formal lease deed. Notably, CIDCO has clarified that no transfer charges will be imposed on subsequent property transactions after the conversion to freehold, potentially increasing participation from homeowners.
Industry experts believe this change could streamline property registration and inheritance processes while providing enhanced flexibility for redevelopment or resale.
Achieving freehold status eliminates a layer of bureaucratic management, granting full title to the owner.
Following conversion, the responsibility of maintaining and updating the land title records will shift to the Department of Land Records under the Government of Maharashtra, effectively integrating these plots into the state’s property record system.
This initiative marks a significant policy shift in land administration for CIDCO, which has traditionally maintained leasehold control over most of its residential plots since its inception.
