State to charge 15% of market price for allowing ownership of leased-out-plots

The state government has decided to charge 15 per cent of the market price for allowing ownership of leased-out plots. The state Cabinet has recently approved this and a notification in this regard is expected to be out soon.

According to sources in the state Land and Land Reforms department, the decision will benefit a good number of people in areas like Salt Lake and several other urban areas as they will be able to get ownership rights of residences or land for industry taken on lease. In the current act, while taking land on lease, 95 per cent of its market price needs to be paid as ‘selami’. Another 0.4 per cent of the land price is to be paid to the state government as rent every year.

The state Cabinet on January 11 had taken the historic decision of allowing land other than that vested under its 'khas' possession to be transferred for commercial purposes on a freehold basis.

Leasehold land is problematic for developers and individual owners. The former face hurdles and delays in mortgaging or marketing projects, with clearances required from the leasing agency at each step; the latter have to approach the agency for permission to sell or purchase.