CIDCO’s revenue collection to fall by Rs 243 crore

Navi Mumbai Housing Federation members welcomed CIDCO’s decision

CIDCO's revenue collection is likely to fall by approximately Rs 243 crore once the state cabinet gives its decision. This comes after the CIDCO board on Monday advised to do away completely with the transfer charges (ranging from Rs 25,000 to Rs 10 lakh excluding 18 per cent GST) on every resale of property across the state where CIDCO is the town planning authority.

The board has also consented to convert all ‘leasehold land' to ‘freehold land' by making a nominal payment to CIDCO, which could benefit future redevelopments and self-redevelopment of dilapidated structures. mid-day had in its reported ‘Voices against transfer premium charges grow in Navi Mumbai' dated September 20, highlighted how various citizen associations have started a people's movement in Navi Mumbai to put pressure on CIDCO to end this additional "financial burden on resale property buyers". Political leaders from various parties have also extended their support to public demand.

State government's support

Confirming the likely dip in revenue collection through transfer premium, CIDCO's newly-appointed chairman and MLA Sanjay Shirsat told mid-day, "It had been a long-standing demand of the people in Navi Mumbai for over two to three decades to do away with the transfer premium charges and to convert all leasehold land into freehold land."

He said CIDCO has collectively accepted these demands after the issues were discussed with Chief Minister Eknath Shinde and the deputy chief ministers. "The CM had even applauded the decision and termed it ‘good' and for the welfare of common people," said Shirsat.

Shirsat added, "Similarly, CIDCO had leased out the lands to co-operative housing societies and developers on a lease of 60 years and, as per public demand, CIDCO has agreed to convert these leasehold lands to freehold, for which a nominal premium will be levied to societies. This will also open avenues for redevelopment or self-redevelopment of dilapidated structures." He said a formal approval from the state cabinet is awaited, which is likely to be tabled and approved on October 5, or in the cabinet meeting to be held thereafter.

Forthcoming election

When asked if he was confident of turning these announcements into votes in forthcoming elections, Shirsat said, "These are long-standing demands of people in Navi Mumbai and other parts of the state where CIDCO is the town planner, but none of the previous governments took such a proactive step in the interest of the common man."

"This is indeed a good decision by CIDCO, and this will bring an end to the financial burden on the common man. Our federation has been actively raising public concerns," said Navi Mumbai Housing Federation secretary Bhaskar Mhatare. Advocate Shreeprasad Parab said the state cabinet shall bring a proposal of nominal conversion charges and sufficient time and instalments shall be made available to societies for successful implementation of such a conversion scheme.

"The one-time conversion charges will be a huge benefit not only to the people of Navi Mumbai but also to CIDCO, as a large amount of funds will be generated for CIDCO, which can be utilised in future housing projects," said Parab.

Public reaction

Swachh Kharghar Foundation founder president Mangal Kamble said, "Various societies, federations, NGOs, and all political parties had put pressure on CIDCO, and it is these collective efforts that paid off. We are hoping that the cabinet approves it before the code of conduct is announced."

Binu Thankappan, a resident of Kharghar said, "It's understandable that during the run-up to the state elections, the present government will do things in the people's favour. This decision is a result of the efforts by the aware citizens of Navi Mumbai who not only identified such a lacunae, but also created sustained campaigns to improve civic governance. More such campaigns are ongoing. These are signs of a maturing society."