Pune: In a move aimed at boosting affordable housing, the Maharashtra government has imposed new conditions for housing societies seeking land ownership for self-redevelopment. Societies that convert their leasehold or occupancy rights (Class-2 land) into freehold ownership (Class-1 land) will now be required to reserve 25% of the additional Floor Space Index (FSI) for beneficiaries of the Pradhan Mantri Awas Yojana (PMAY).
Additionally, if a housing society does not receive extra FSI during redevelopment, it will not qualify for the state government’s concessions on land ownership transfer fees.
Key Provisions of the Government Order
Conversion of Class-2 to Class-1 Land: Cooperative housing societies on leasehold (Class-2) land will be allowed to acquire full ownership (Class-1).
Concession on Land Transfer Fees: Societies must pay only 5% of the Ready Reckoner rate as a transfer fee for ownership conversion.
Mandatory 25% FSI Allocation: If societies receive additional FSI, 25% of it must be reserved for PMAY beneficiaries.
Penalty for Non-Compliance: If the reserved area is not allocated, the transfer fee paid will be forfeited, and ownership rights will not be granted.
Timeline for Redevelopment: Societies must initiate redevelopment within two years of availing the land ownership concession.
Extension & Government Takeover: If redevelopment does not begin within two years, a two-year extension may be granted. Failure to commence redevelopment even after this extension will result in cancellation of the concession, and the land will remain under government ownership.
Deadline for Concessions: December 31, 2025
The state government is amending the Maharashtra Land Revenue Code (1966) to facilitate the conversion of leasehold lands used for residential, commercial, and agricultural purposes into freehold ownership.
Housing societies that fail to utilize the concession before December 31, 2025, will have to pay 60% of the Ready Reckoner rate instead of 5% for land ownership conversion. The official notification regarding these regulations has been issued by Deputy Secretary Dhananjay Nikam.
