August 18, 2025: Not a single housing society in Mumbai built on government or collector’s land has opted for self-redevelopment, according to data obtained under the Right to Information (RTI) Act. The city and its suburbs have around 3,000 cooperative housing societies on occupancy class II land.
The information was sought by Salil Rameshchandra, president of the Federation of Grantees of Government Land (FGGL), who enquired about the progress of land conversion to freehold. He pointed out that last year, the government announced a concessional scheme under which societies opting for self-redevelopment could convert land to freehold by paying just 5% of the Ready Reckoner (RR) rate
The scheme required redevelopment to be initiated within two years, with 25% of the additional area reserved for the Pradhan Mantri Awas Yojana. If redevelopment was not undertaken within the stipulated time, societies could seek a two-year extension, after which the land would revert to its original status, and any payment made would be forfeited.
“It is clear that this scheme is ill-conceived and is impractical; hence, it has remained only on paper,” said Rameshchandra.
Instead, a greater number of societies have shown interest in another concessional plan, which allows conversion by paying 10% of the RR rate as a premium. RTI records reveal that six societies had converted land when the premium was 15% (before March 2024), while 62 societies have applied since the rate was reduced to 10%.
Rameshchandra attributed the lukewarm response to financial constraints faced by residents. He noted that most societies on government land are occupied by middle-class or low-income senior citizens for whom even concessional amounts remain unaffordable. “The conversion to freehold also requires clearing of violations, especially membership transfer approvals. The red tape and corruption also create their own problems,” he added.
Source: The Times of India
