MUMBAI: An RTI inquiry has revealed that not a single housing society located on government land in Mumbai has chosen the path of self-redevelopment.
There are approximately 3,000 cooperative housing societies in Mumbai and its suburbs situated on land leased by the government or collector’s land, categorized as occupancy class II.
Salil Rameshchandra, president of the Federation of Grantees of Government Land (FGGL), who requested details about land conversion under the RTI Act, noted that the government introduced a concessional scheme last year that reduces the premium for freehold conversion. Under this 5% concessional scheme, housing societies can convert to freehold by paying only 5% of the Ready Reckoner (RR) rate, provided they engage in self-redevelopment within two years of conversion.
Additionally, 25% of the extra area must be allocated to the Pradhan Mantri Awas Yojana. If residents fail to execute the scheme within two years, they receive a further two-year extension; beyond that, the land reverts to its original status, and the housing society risks losing the payment made.
“The scheme is evidently flawed and impractical, which is why it has only existed on paper,” Rameshchandra declared.
Several housing societies have expressed interest in the second concessional scheme that allows a 10% premium for land conversion to freehold. According to RTI data, six societies opted for conversion when the premium was 15% (prior to March 2024), while 62 societies have chosen the scheme at the reduced premium of 10%.
Rameshchandra attributes the low participation rate to various factors, including the financial capacity of most residents in these housing societies, many of whom are middle-class or low-income senior citizens. The required payments are substantial. “Converting to freehold also entails resolving violations, particularly concerning membership transfer approvals. Bureaucratic hurdles and corruption further complicate the process,” he stated.
