The Maharashtra government has proposed a revised framework to simplify the conversion of leased land into freehold ownership for cooperative housing societies while expanding the categories of beneficiaries eligible for such conversions. The proposed amendments are expected to benefit more than 5,000 housing societies across Mumbai and the Mumbai Metropolitan Region.
The Revenue Department issued a draft notification on June 4 under the Maharashtra Land Revenue (Conversion of Occupancy Class II and Leasehold Lands into Occupancy Class I) (Second Amendment) Rules, 2026, inviting suggestions and objections from the public within 10 days.
One of the key changes introduced in the draft rules is the requirement for cooperative housing societies to obtain the consent of at least 51% of their members before applying for the conversion of Occupancy Class II land into Occupancy Class I land. Earlier, such member approval was not mandatory.
The proposed amendments also provide relief to societies where land parcels were originally allotted directly to individual members and are reflected in official property records, including property cards and 7/12 extracts. Under the revised framework, these members can apply directly to the district collector for conversion after securing a no-objection certificate from the Deputy Registrar of Cooperative Societies, subject to approval from the state government.
The new rules further extend eligibility to housing societies formed on government land that was initially leased to individuals, institutions or trusts and later transferred to societies with the approval of competent authorities.
“Even if an unauthorised transfer has subsequently been regularised by the competent authority, such land shall be deemed to have been granted for the purpose of a co-operative housing society and these rules shall apply for conversion of Occupancy Class II into Occupancy Class I,” says the notification.
The draft also clarifies that conversion premiums for mixed-use plots will be calculated proportionately based on land use. Societies undertaking self-redevelopment must begin work within two years of conversion, failing which the land could revert to Occupancy Class II status. The government currently charges a premium of 5% of the ready reckoner value and permits payment over three years.
Source: Hindustan Times
