Mumbai city collectorate has granted ownership rights of its 1387 square meter plot at Malabar Hill to Hydra Trading Private Limited (HTPL) for Rs 14.79 crore since Maharashtra state approved the conversion of leasehold to freehold plot.
In its order issued on April 18, 2019, the city collector, Shivaji Jondhale, granted ownership rights of the plot to HTPL, stating that according to the ready reckoner rate of 2018 (Rs 3,20600/sqm), the total value of the plot was calculated to be Rs 59, 18, 27, 600 whose one fourth value comes to 14,79,56,900.
While calculating plot value, 1.33 base FSI available in the island city was also included as part of the plot following the state's policy.
Floor space index (FSI) indicates how high a developer can build a project on a plot. it is the ratio of the total built-up area to the size of the plot.
The collector's office has 19 other applications pending in the same category. However only one plot has been sanctioned till now. others are under process.
The state through a notification on March 8, has decided to grant on leasehold and occupancy class II (conditional ownership) basis for residential use to individuals and industrial use to individuals and cooperative housing societies.
According to the policy, the state government charges 25% of the ready reckoner value of the plot for converting lease hold to freehold ones.
The same formula applies to an occupation class category plot too, but the amount already paid for converting the plot from leasehold to occupancy class II, gets deducted from the final charges.
Currently, leasehold tenant pay the government rents as low as 2% to 5% of the 25% ready reckoner rate.