Penalty for delay in filing renewal application on leasehold premises slashed from 10% to 0.1%

The state revenue department on August 7th 2019 issued a government resolution reducing the penalty for delay in filing an application for renewal. The rate of 10% ready reckoner rate (RRR) was slashed to 0.1%.

Several plots in Mumbai such as Mazgaon, Nariman Point, Cuffe Parade, Churchgate, Backbay are leasehold lands. When Dr. Medha Shringarpure, a resident of Mazgaon Terraces Cooperative Housing Society approached the government to renew the lease, she was penalized with Rs. 2 crore for the delay in application of renewal and a further Rs. 1.5 crore for 30 year renewal of lease. After slashing down of penalty, it reduced to Rs. 2 lakhs. She also mentioned that on account of high penalty, many of the residents of such premises whose lease have expired were afraid of moving the state for renewal.

The move of reduction in penalty was taken by the state revenue department following a strong resistance from citizens.

Salil Rameshchandra of Federation of Grantees of Government Land said that the state should allow conversion of leasehold land to freehold as it will earn more revenue from non-agricultural assessment.