State Finalises Policy to Ease Self and Cluster Redevelopment on Government Land

By
Special Correspondent
-
15
183

Mumbai: In a major move aimed at unlocking stalled redevelopment across Mumbai and other urban centres, the Maharashtra government has finalised a comprehensive policy to streamline self and cluster redevelopment of buildings situated on government-owned land. The policy—cleared in a high-level multi-party meeting chaired by the Revenue Minister—introduces sweeping concessions, digitised processes, and a single-window framework to cut through approval delays that have long hindered redevelopment.

Key Concessions and Structural Reforms

Under the approved framework, housing societies opting for self-redevelopment will receive substantial waivers on premiums and penalties traditionally associated with land conversion and lease regularisation.
• The existing 5% charge for converting occupancy rights from Class-2 to Class-1 will continue, but the earlier mandatory requirement of providing homes under PMAY has been removed.
• The deadline for societies to apply for Class-1 conversion, earlier set at December 2025, will be extended to accommodate pending proposals.

To resolve longstanding disputes, district collectors of Mumbai City and Mumbai Suburban will now be required to settle ownership and ‘malmatta’ disputes within a fixed timeframe, ensuring that redevelopment projects are not stuck due to procedural deadlock.

50% Reduction in Penalties for Past Breaches

Societies undertaking self-redevelopment will benefit from steep reductions in penalties for earlier breaches such as unauthorised construction, unauthorised transfer of rights, or change of land use.

Revised rates include:
• Transfer permission charge cut from 25% to 12.5%
• Unauthorised transfer penalty reduced from 50% to 25%
• Penalty for unauthorised construction/use change halved from 2% to 1%
• Outside Mumbai, redevelopment approval charges slashed from 25% to 12.5%

Additionally, there will be a 50% concession on premiums for land-use change (CLU), including agricultural-to-non-agricultural conversions and same-use transfers.

Faster Lease Renewal and Class-1 Conversion

A fixed timeline will be notified for Lease renewal, Regularisation of lease breaches and Class-1 conversion applications

These will now be processed on priority by district collectors, with charges capped at 50% of prevailing rates.

For redevelopment projects on government land, the government has also approved 50% waiver on land premium and conversion charges, substantially reducing redevelopment cost burdens for housing societies.

Single-Window System and Digitisation

To eliminate the need for multiple departmental clearances, the government will launch a dedicated single-window system for all redevelopment approvals.
Under town-planning schemes, final plot details, corrected land records, and property documents will now be issued online.

A new Self/Cluster Redevelopment Cell will also be created within the redevelopment authority to exclusively handle government-land cases.
District collector NOCs—previously a major bottleneck—will shift to a fully online platform.

Out-of-Court Settlement Mechanism

To clear the backlog of legal disputes around lease renewal, ownership and breaches, the government will introduce a special out-of-court settlement scheme, enabling faster closure of cases that have stalled redevelopment for years.

A Policy Expected to Unlock Thousands of Homes

Officials said the policy has been designed to reduce cost burdens, cut procedural delays, and bring clarity to thousands of societies housed on government land—many of which are trapped in legal and administrative limbo.

With major waivers, defined timelines and digital approvals, the government expects a significant uptick in redevelopment proposals in the months ahead.

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