Maharashtra Lifts Freeze on Land for Housing Societies

The Maharashtra government has lifted its freeze on allotting state-owned land to cooperative housing societies.

The freeze had been in place since 2010. Under a revised policy, societies must now include flats for backward-class and disabled persons.

At least 20 per cent of members in every housing society receiving government land must be from backward classes.

Five per cent must be persons with disabilities, Revenue Minister Chandrashekhar Bawankule said on Wednesday.

The government had earlier allotted land under resolutions dated July 9, 1999 and May 25, 2007. The process was suspended for new societies after a controversy in 2010.

Bawankule said the revised policy was prepared in view of a petition filed by the Sanjay Gandhi Cooperative Housing Society in Kolhapur and Supreme Court observations made on November 25, 2024.

New auction process replaces lottery system

Under the new system, government land will no longer be allotted through the earlier lottery method.

District collectors will prepare lists of available plots. Auctions will be conducted through public advertisements and a technical and financial bid process.

• Base price: 2.5 per cent of market value in Mumbai city and suburbs, 5 per cent in the rest of Maharashtra
• The society offering the highest bid will be selected
• Land will be given on a 30-year lease
• Conversion to Class-I occupancy is possible only after the lease period ends

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Reservation quotas and income/carpet-area norms

The policy sets out reservation categories for available plots:

• 40 per cent: general category
• 15 per cent: state government, local body and corporation employees
• 10 per cent: Scheduled Castes, Scheduled Tribes and nomadic tribes
• 10 per cent: writers, artists, sportspersons and journalists
• 5 per cent each: Central government employees, armed forces personnel, elected representatives, freedom fighters and their heirs, persons with disabilities, and economically weaker sections

Income limits and carpet-area norms have also been revised, in line with the Seventh Pay Commission. Group-D employees earning up to Rs 50,000 a month qualify for flats up to 300 sq ft.

Group-C employees, earning between Rs 50,001 and Rs 1 lakh, qualify for 450 sq ft.

Group-B employees, earning between Rs 1,00,001 and Rs 1.5 lakh, qualify for 650 sq ft. Group-A employees qualify for 1,076 sq ft, with no income ceiling.

Also Read: Maharashtra to Introduce Landmark Digital Land Titling Act

Safeguards: joint membership and benami flat rules

The policy makes joint membership of husband and wife compulsory in societies allotted government land.

District collectors will have powers to take over dummy or benami flats without compensation, if such units are found.

Prior permission from the district collector will be mandatory for transferring flats, mortgaging them for bank loans, or redevelopment.

Bawankule said the revised policy would make it easier for thousands of government employees, journalists, artists, members of backward communities and other citizens to obtain government land for housing.

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