‘Slowdown in real estate may hit state govt coffers`

Once collector’s land is made freehold, it would be free from the state government’s grip, and its full development potential could be exploited. It is, however, not mandatory to make collector’s land freehold as the provision is an enabling one, officials said.

“The premiums will range from 15% to 50%. It was expected that once collector’s land becomes freehold, the government may earn a huge premium, but that prospect appears bleak now in view of the slowdown in the real estate sector,” the bureaucrat said.

On November 17, 2018, the revenue department had published the draft rules for conversion of collector’s land. According to these rules, a 50% premium on RR value was proposed on what is officially termed as Class II land (for residential use, restricted use and transfer) and for land leased for a period up to 99 years, 37% on land leased for more than 99 years and currently held for the same lease period, and 25% on land granted as Class II or as leasehold to a cooperative housing society. Further, after expiry of three years from the date of publication of the gazette, for land held as Class II, the premium was to be 60%. For all other categories premium was to be 75%.

The department received 500 objections and suggestions to its proposal. “We carefully studied these and have simplified the draft rules. Now conversion to freehold land will be simple and premiums too be will be less,” the bureaucrat said.

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