New Policy On Sale Or Change Of Use Of Leased Land Gets Nod, ET RealEstate
MUMBAI: The state cabinet on Wednesday approved a fresh policy for recovering unearned income from the sale and change of use of leased land.
A large number of such properties are spread across Mumbai, Mumbai suburbs and other parts of the state, chiefly Nagpur and Amravati.
According to a government release, the unearned income to be recovered would depend on use of land and whether permission was obtained prior to sale or change of use.
Since the land is leased, government charges unearned income whose percentage is the difference between the current market value or the price realised by way of sale, whichever is higher and the occupancy price at which the land was originally granted plus the structural and permanent improvements which will create assets and influence valuation of land.
In case of agriculture to agriculture, the unearned income will be 50% with permission and 60% without permission, for agriculture to non-agriculture it will be 60% with permission and 75% without permission, for change of use from non-agriculture to the previous use it will be 50% with permission and 60% without permission.
For permission for change to non-agricultural use, the unearned income charged will be 60% with permission and 75% without permission.
