Maharashtra announces new leasing norms

The Maharashtra government has decided to put a ceiling of 30 years on lands leased during the British Raj for periods ranging from 55 years to 999 years.

Rent of these properties will also be hiked to bring it on a par with the prevailing market rate.A decision to this effect was taken at a Cabinet meeting here on Tuesday.

Addressing mediapersons later, Chief Minister Prithviraj Chavan said while many of the leases expired by the 90s, the government has decided to hike the rent.“Earlier, during the British Raj, several properties on government land used to be leased not just for 50 or 99 years, but sometimes for 999 years as well. Many of them have expired.

In several posh  areas like  Colaba in south Mumbai, rent for 570 sq metre land was only Rs 17.71 and for 3,070 square metre land, the rent came to Rs 74.79 annually.“The prevailing market rate in the sought after Colaba is around Rs 600 per sq metre per month for commercial purpose, while for residential areas, it is around Rs 290 per sq metre per month,” the chief minister said.

The state government’s earlier decision in this matter was challenged in court, following which the Cabinet withdrew its decision.

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