Pune's PCNTDA Residents to Get Freehold Status, Promises Maharashtra Minister Uday Samant
Maharashtra Minister Uday Samant has assured PCNTDA residents that a decision will be made on freehold status without causing financial loss to the state government.
Freehold PropertiesPcntdaPuneMaharashtraReal EstateReal Estate PuneJul 05, 2024
The PCNTDA was established in 1972 to acquire and develop land for distribution to laborers and economically weaker sections. The government generated revenue through the highest bids from auctions according to the ready reckoner rate at that time, fulfilling the purpose of PCNTDA. In 2021, PCNTDA was merged with the Pune Metropolitan Region Development Authority (PMRDA). The developed properties were handed over to the Pimpri-Chinchwad Municipal Corporation (PCMC) for maintenance and repairs.
However, property owners have not received the Building Completion Certificate due to PCNTDA's complicated processes. Property transfer fees are exorbitant, and the heir registration process is complicated and time-consuming. Additionally, 95% of societies lack convenience deeds, preventing the redevelopment of 30-year-old societies. These properties do not show clear titles, causing nationalized banks to withhold loans from property owners. MLA Landge highlighted that 97,414 property owners are suffering mental agony due to these issues.
The Maharashtra State Government has taken a positive stance on this matter, which will provide relief to around 5 lakh PCNTDA citizens. MLA Landge stated that the freehold of properties within PCNTDA will not burden PCMC, PMRDA, or the Maharashtra State Government. Since PCNTDA has been merged with PMRDA, the developed, i.e., leased properties are classified under PCMC. PCMC earns around Rs 100 crore in revenue from these properties and receives subsidies from the Central and Maharashtra state governments. Additionally, property tax and other revenue sources belong to the PCMC. Therefore, if the properties are freehold, i.e., free from lease agreements, revenue will increase.
Freehold properties refer to real estate where the owner possesses full and permanent ownership of both the land and any structures on it. Unlike leasehold properties, which are held for a specified term and often subject to restrictions by the landlord, freehold ownership provides indefinite tenure. Owners have the autonomy to use, modify, sell, or lease the property at their discretion. This type of property is highly desirable as it offers security and complete control without the need to renew leases or pay ground rent. Freehold ownership is commonly associated with residential houses and land but can also apply to commercial properties.
The decision to grant freehold status to PCNTDA properties is expected to bring relief to the residents and provide a boost to the real estate market in Pune.
Frequently Asked Questions
What is the current status of PCNTDA properties?
The properties are currently leasehold, and owners have not received the Building Completion Certificate due to PCNTDA's complicated processes.
How many properties will be affected by the decision to grant freehold status?
Around 97,414 properties in the PCNTDA area will be affected by the decision.
What are the benefits of freehold ownership?
Freehold ownership provides indefinite tenure, autonomy to use, modify, sell, or lease the property, and security and complete control without the need to renew leases or pay ground rent.
How will the decision to grant freehold status affect the revenue of PCMC?
The revenue of PCMC is expected to increase if the properties are freehold, as they will earn more from property tax and other revenue sources.
What is the Maharashtra State Government's stance on this matter?
The Maharashtra State Government has taken a positive stance on this matter, which will provide relief to around 5 lakh PCNTDA citizens.
Related News Articles
Private Sector Capex Drives India's Market Boom: Chris Wood
Chris Wood, Jefferies, shares his views on the Indian market, private sector capex, and the real estate cycle.
Compass CEO Robert Reffkin Offloads Shares Worth $291,230
Compass, a prominent real estate technology company with a market cap of $3 billion and annual revenues exceeding $5.3 billion, recently saw its CEO, Robert Reffkin, sell 49,316 shares of the company's stock.
Real Estate Market Remains Resilient, But Affordable Housing and High-End Segments Face Challenges
Gulam Zia, Senior Executive Director at Knight Frank India, highlights the resilience of the real estate market post-COVID-19, but raises concerns over the shrinking affordable housing segment and the challenges in the ₹10-50 crore property range.
J&K Government Establishes JK RERA Authority: A New Milestone in Real Estate Regulation
The Jammu and Kashmir (J&K) government has constituted the J&K Real Estate Regulatory Authority (JKRERA), effective from December 16, 2024, to enhance transparency and accountability in the real estate sector.
Anant Raj Reports 75% Surge in Net Profit in Q2 FY25
Anant Raj, a leading real estate company, has reported a significant 75% increase in its net profit during the quarter ended September 30, 2024. The company's net consolidated total income also saw a substantial growth of 53.67%.
Embassy REIT Plans to Sell Quadron Office Campus in Pune, Expects Rs 1,200 Crore
Embassy REIT is expecting to fetch more than Rs 1,200 crores for the sale of Embassy Quadron, a 1.9 million sq ft office campus in Pune.