The Maharashtra cabinet sanctioned the lease renewal policy for government plots across the state excluding Mumbai.
The officials of revenue department said the Government has also decided that from now no lease will be renewed for more than 30 years and the rent on the same will be revised every five years. The statistical report shows that 1,843 plots are given on lease and lease of 776 plots has expired but cannot be renewed as there is no such policy. Similarly, the lease was given to 537 plots for residential purposes out of which the lease of 285 has expired are waiting for renewal.
The new policy has the provision to charge a rent of 2% of 25% of the ready reckoner value of the plots for residential use. The rent will be charged at 4% and 5% for industrial and commercial purpose respectively.
Apart from this, the rent is determined at 5% for commercial and residential use of a leased plot and the rent will be charged at 1 percent in case of cooperative housing society. The official also informed that the original lease rent with additional 25% will be charged in case the new lease rent is lower than the original rent.
The policy also drafted the procedure that if violation of these lease terms takes place then the lease of such plots will be renewed only after the violator pays a premium to regularize the violation.
The official was quoted saying that the lease will be renewed once the violation is regularized. The district collector has the right to renew the lease.
The state cabinet has also decided to cut down the penalty in moving a renewal application from 1% to 0.1% of the 25% of the ready reckoner rate.