MH: Conversion of Nuzul leasehold land to freehold

[Barun]

Hello, 

Maharashtra govt has announced a panel to study the conversion of Nuzul land from leasehold to freehold. This could benefit over 36,000 people. Five years ago, MP govt. too had announced a decision to amend the rules to allow for such conversion. 

I tried to find out more about about Nuzul land, but could not. Would greatly appreciate if anyone can provide more information. 

Thanks and regards,

Barun 

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MH: Panel to study state decision to free Nuzal leasehold lands 

DNA, Mumbai, Wednesday, 23 December 2015 

The government decision is expected to benefit 36,791 plot holders across the state, mainly in Nagpur and Amravati. Earlier, these areas were a part of the Central Province and Berar. So most of the Nuzal hold plot were given for industrial, commercial and residential purposes. To own these leasehold plots, the buyers had to pay the government.

The Maharashtra government has set up a committee to study the decision of freeing the Nuzal leasehold lands. Principal secretary of the revenue department will head the committee.

According to a senior government official, the state cabinet recently approved the decision of providing relief to Nazul plot holders regarding renewal of lease and giving permanent ownership. "The committee's focus area will be the repercussions of freeing the Nuzal leasehold lands... how it will impact the state economy, and so on. Once the detailed report is prepared, the panel will submit it to the state government with constructive suggestions," the revenue official added. The committee will submit its report within three months.

Earlier, if a plot holder transferred the lease to another person or changed its use without permission of the competent authority, he had to pay a fine to get it regularised. This penalty was known as unearned income and was 25 per cent of the market value of the property at the time when the plot holder submitted the application for regularisation.

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MP: Significant cabinet decision in favour of common people for conversion of Nuzul's leasehold land to freehold

by Dinesh Malviya, Dept. of Public Relation, Govt of Madhya Pradesh, Sept 14, 2010 

The cabinet at its meeting chaired by the chief Minister Shri Shivraj Singh Chouhan here at Mantralaya today endorsed the amended rules for conversion of Nuzul’s leasehold land to freehold.

Following conversion of land from leasehold to freehold the land holder would be the owner of the plot. In future he would not be required to make any payment to the government nor would there be a need for renewal of any type. He would be able to transfer, sell, donate the land as per his desire and use the plot for the purpose for which the conversion is sanctioned.

An officer of Deputy Collector level would be the authorized official for conversion of land from leasehold to freehold. This scheme is optional, so the lease holders who are desirous of this conversion would be able to apply for this provided the lease should be valid, no dues should be outstanding, lease terms are not violated and in case the patta has been issued by a development authority or Housing Board then their NOC would be required. The applicant would have to enclose an affidavit with the application that no case pertaining to the land is not pending in any court.

The application would be disposed off within 60 days. One percent of the prevailing market rate of the patta would be payable as conversion charge for residential purpose while in case of commercial purpose the charge would be one and half percent. Besides, the lease rent for remaining period or 10 years’ lease rent (whichever is less) would also be payable. For conversion to freehold the conversion land revenue of 10 years as per the purpose would have to be deposited lump sum. On depositing this amount the required transfer deed would be registered.

It may be mentioned here that no fee would be charged for plots measuring upto 50 square meter and the stamp duty would be payable on the amount of conversion charge only for registration of the transfer deed.

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