BMC to charge levy on leased plot transfer

Mumbai: In a move which will impact redevelopment of over 4,100 properties in Mumbai, the BMC on Wednesday gained the right to levy a premium on transfer of its leasehold plots. 

    The state legislative assembly approved a bill to modify the Mumbai Municipal Corporation (MMC) Act on Wednesday. The bill also made it mandatory for a lessee to seek prior permission of the civic chief before entering into any such transfer. A clause permitting the BMC chief to levy penalty for plots where transfer of rights has taken place since June 22, 1993, was also provided for. 
    The civic body, which is among the biggest landlords in the city, has allotted 4,176 plots on lease. Most of these are situated in posh areas. While a number of leases were entered into for 99 and 999 years (some have even been awarded for in perpetuity), it was found that third-party rights had been created on a number of such plots in violation of lease conditions. 
    After the BMC's general body resolved to charge transfer premium, withprospective effect since June 22,1993, some leasehold plot holders approached the court. In its ruling, the court had said the civic body could not impose any such transfer in the absence of legislation. The bill approved on Wednesday amended norms to empower the BMC in this regard. While the bill was approved unanimously, BJP legislator Prakash Mehta demanded "extension of the scope" of the bill to include all civic properties, which he claimed were collectively worth Rs 60,000 crore. Mehta and NCP's Nawab Malik asked if the bill did not amount to "regularization of illegal transfer deeds". Malik also enquired about the fate of transfer deeds on such plots entered into before 1993. 
    BJP's Yogesh Sagar demanded guidelines for collection of the premium. Minister of state Bhaskar Jadhav said such norms would be in the offing.