The Maha state government on Thursday gave its stamp of approval to a proposal for extending the lease of plots in Navi Mumbai, Nashik and Aurangabad areas up to 99 years, where City and Industrial Development Corporation (CIDCO) is the planning authority.
According to the notification published by the state government, those who wish to take benefit of the state government’s scheme will need to pay a one-time premium. The premium rates for the residential plots up to 25 square metres will be 5% of the reserve price of CIDCO for that area, for plots up to 50 square metres it will be 10% of reserve price, for plots up to 100 square metres it will be 15% and for plots above 100 square metres, it will be 20%.
In the case of commercial plots up to 200 square metres, the premium rate will be 20% of reserve price and 30% for plots above 200 square metres.
The decision is expected to benefit five lakh families living in the 344 sq km Navi Mumbai Municipal Corporation (NMMC) area. The land in NMMC area belongs to CIDCO and it has been given on 60 years lease to housing societies, educational instructions, hospitals and other categories.
Since the land belongs to CIDCO, every time there is a sale-purchase transaction of a flat in Navi Mumbai area, apart from paying the stamp duty, citizens have to pay a transfer fee to CIDCO between Rs 75,000 to Rs 1.5 lakh, depending upon area of flat, when the building got occupation certificate, when society was formed, etc.
As the land belongs to CIDCO, even for small issues, like a home loan transfer from one financial institution to other, people have to run from pillar to post in the CIDCO office to get its NOC.
As the land belongs to CIDCO, the issue of redevelopment of old buildings in the Navi Mumbai area is also hanging in balance for years together. It is expected that once the land is converted to freehold, redevelopment of old housing societies which are as old as 40 years becomes easier.
However, this decision will be partially applicable in Panvel Municipal Corporation area. It will be applicable in fully developed nodes such as Kalmboli and Kamothe, but not in Kharghar. The Navi Mumbai real estate is valued around Rs 800 to Rs 1,000 cr, which includes both first sale and resale market.