In a notable initiative designed to enhance ownership rights for property owners, the Maharashtra government has sanctioned the transition of residential plots allocated by the City and Industrial Development Corporation (CIDCO) from leasehold to freehold. This decision is anticipated to affect plot owners throughout Navi Mumbai and other areas developed by CIDCO.
To facilitate the effective implementation of this directive, CIDCO has established a specialized committee tasked with overseeing and reviewing the applications submitted for these conversions. The scheme is applicable to residential plots allocated via the tender process, CIDCO-constructed housing projects, and plots distributed under the 12.5% and 22.5% land allotment schemes.
As per CIDCO, eligible plot owners are required to submit an application and remit the designated conversion fees to commence the process. Upon approval, the leasehold title will be transformed into freehold, granting complete ownership rights and significantly simplifying future property transfers and financing.
In instances where unearned income recovery is mandated in the original agreement, that amount will also be collected along with the conversion fees, CIDCO stated in an announcement. For plots allocated at concessional or subsidized rates, additional applicable charges will be imposed in addition to the standard conversion fee.
The scheme is optional and is limited to plots for which a formal lease deed has been executed. Importantly, CIDCO has clarified that once a leasehold plot is converted to freehold, no transfer charges will be applied to subsequent property transactionsāan initiative expected to promote broader acceptance of the scheme among homeowners.
Industry experts indicate that this conversion may also simplify the processes of property registration and inheritance, while providing greater flexibility for redevelopment or resale. Achieving freehold status eliminates a layer of bureaucratic control and grants complete title to the owner.
Following the conversion, the duty of maintaining and updating the land title records will be transferred to the Department of Land Records within the Government of Maharashtra, thereby further incorporating these plots into the state’s primary property record system. This signifies a significant policy change in land administration for CIDCO, which has historically retained leasehold control over the majority of its residential plots since its establishment.
