State nod to convert leasehold land to freehold

MP | 21 Jan 2023 | Kolkata: Giving an opportunity to lease-holders to convert their land parcels to freehold, the state Urban Development and Municipal Affairs department has notified the West Bengal Land Conversion (Leasehold land to Freehold) Scheme 2022 which will allow leased-out plots where the tenure of the lease is 99 years or more to be converted to freehold by paying a fee that ranges between 7.5 and 20 per cent of the land value. 

This will be applicable for residential and commercial land parcels of government agencies such as Kolkata Metropolitan Development Authority (KMDA), New Town Kolkata Development Authority (NKDA) and West Bengal Housing Infrastructure Development Corporation (WBHIDCO), leased out for 99 years or more. 

“The demand for land for real estate purposes is on the rise with several infrastructure projects being undertaken. So, the government will be able to maximise revenue earnings since the capital appreciation of freehold land is much higher than leasehold ones,” a senior Nabanna official said. 

Owners of plots leased by the Sriniketan Santiniketan Development Authority, Asansol Durgapur Development Authority and Siliguri Jalpaiguri Development Authority will also benefit from the scheme. It allows societies in apartment buildings to apply for conversion and also has the provision for individual flat owners to convert just their apartments into freehold in case other flat owners do not want to change their status. 

The state Cabinet on January 11 had taken the historic decision of allowing lands other than those vested under its ‘khas’ possession to be transferred for commercial purposes on a freehold basis. According to real estate developers, they often face hurdles and delays in mortgaging or marketing projects as clearances are required from the leasing agency at every step. 

Leasehold land is problematic for developers and individual owners. The former face hurdles and delays in mortgaging or marketing projects, with clearances required from the leasing agency at each step; the latter have to approach the agency for permission to sell or purchase. Individual housing plots in Salt Lake that were sold by the urban development department will not come under the purview of this scheme. 

https://www.millenniumpost.in/kolkata/state-nod-to-convert-leasehold-land-to-freehold-506066