Industry captains hail move to simplify & streamline land laws

Industry captains have welcomed the Bengal government’s move to allow the conversion of land on a freehold basis from leasehold.

It had been a long-standing proposal from all industries to allow the government allotted lands or vested land on freehold, which is going to be allowed on the basis of a notification dated July 10 by the state Land and Land Reforms department.

Now, a clear-cut procedure has been laid down with the rates for the conversion of status from leasehold to freehold. Normally all sorts of land will be converted at 15 per cent as per IGR rate, except land for Tourism which will be 110 per cent and for the industry it will be at 7 per cent.

However, the government has made it clear that the land use status will not be changed and in case of change, there will be cancellation of the deed.

Provision is also being made for the 30 years leases where of course a premium is 55 per cent + 15 per cent as per IGR rate i.e. 70 per cent.

The built-up space consisting of residential flats on leasehold land of the government will also be now converted to freehold at 15 per cent value as per IGR & CSR. Sushil Mohta, President, Credai West Bengal and chairman, Merlin Group said: “This step is showing a pragmatic approach of the government and this is very, very investment friendly. It is also a “Win-win” situation for both. The government gets higher revenue and for the allottees of land, the bank loans will become easy. Subsequent transfer of the land/ properties will also now be made possible by having the title as freehold.”

Sanjay Budhia, chairman of CII National Committee on EXIM &MD of Patton Group thanked Chief Minister Mamata Banerjee and state administration for the revolutionary step to further simplify and streamline the Land Laws. “This landmark change will provide huge relief to the Lessees and fast track and kick start implementation of Industrial projects. This will give a big thrust to ongoing Industrialization in the state and attract big-ticket investments,” he sai