The state administration has withdrawn a condition that required flat owners in housing societies built on land leased by the government to get the district collector’s permission to rent out the apartment and pay a fee (amounting to 5% of the rent).
The state issued the government resolution (GR) about the relaxation of the rule on Tuesday. Previously, if a flat owner charged a rent of Rs 3 lakh annually, they had to pay Rs 15,000 in advance to the government and request for permission to give the flat on ‘leave and licence’.
The state government had issued a GR about a 5% fee in 2007.
Tuesday’s GR said, “Since there is no change in ownership or lease conditions, if one gives out flat on a leave and licence basis there is no need to charge a licence fee.”
Salil Rameshchandra, president of Federation of Grantees of Government Land, welcomed the development. “We have been pursuing this issue since 2015,” Rameshchandra said. “Now, our next target is to get the government to revoke fees charged for the sale and purchase of flats in such societies.” There are around 3,000 housing societies on government land in Mumbai and around 22,000 across the state.