Freehold Conversion of MCD Shops and Properties

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1.    The scheme covers the following properties.

  • Grant of ownership rights to the certain category of licencees (rehabilitation properties only). The Scheme is purely optional. 
  • This scheme extends to all built up commercial and mixed land use properties allotted by the Department of Rehabilitation, Directorate of Estates, for which ownership rights have been conferred and lease deed executed and registered. 
  • All commercial units irrespective of area for which the allotment/perpetual lease is issued by the department of Rehabilitation or L&DO for residential purpose and building thereon is constructed and where completion certificate or at least D- form in respect of such construction is obtained from the Local Body. 
  • A and C type tenements allotted on leasehold basis by the Department of Rehabilitation or Land and Development Office subject to payment of conversion charges calculated based on the land rates prevailing on the date of submission of the conversion application (in the cases where complete conversion charges along with processing fee apart from damages as communicated, have been cleared).

 The properties which are not specifically mentioned above are not covered under the conversion policy (e.g. institutional allotment including allotment to press, hotels, cinemas, properties covered under the disinvestment policy of the Govt., Petrol Pumps, CNG Station etc. any MCD property).

2.    One time charges payment for conversion from lease hold to freehold are set out in Annexure- ‘B’  read with Annexure ‘C’. These charges are to be paid in lump- sum.
Original Lessees are entitled for a 40% remission/rebate on conversion charges whereas others, who have come into possession by virtue of registered sale deed, are liable to pay Rs 3,000/- (Rupees three thousand only) per annum for non-intimation of sale and are also liable to pay unearned increase wherever applicable in addition to conversion charges..

3.    Conversion would be allowed only with respect to the properties existing in markets transferred from DOE/L&DO.

4.    The application for conversion shall not be entertained unless accompanied by prescribed document(s).

5.    Those who have applied before will not be required to apply again. However, the date of initial application shall be the crucial date for calculation of Conversion Charges where the payment towards conversion charges has been accepted by the L&DO. In cases, the payment made towards conversion charges by way of cheque/demand draft has been returned on account of rejection of the application by L&DO on scrutiny, the relief is not applicable. Where the payment made has been returned on account of transfer of properties to the local bodies, the applicant/lessee shall be eligible for relief (only in the cases where complete conversion charges along with processing fee apart from damages as communicated, have been cleared).

6.    The person/persons in whose name(s) appear on the records of the Land & Estate Dept. as lessee(s) can apply for conversion. If there are a number of lessees, all of them will have to sign the application. However, the lessee(s) can also give Power of Attorney (which should be registered in the office of the Sub-Registrar) to sign the application his his/her/their behalf.

7.     If there has already been a transaction regarding the property/properties and the original lessee and sale deed has been registered though not brought to the knowledge of this department or the property has changed hands, the last purchaser can apply for conversion in his name himself or by way of his attorney. However, penal charges towards non intimation of transaction and applicable unearned increase shall also be charged.

8.     The arrears of ground rent along with interest @18% per annum wherever applicable would have to be paid by the applicant before conversion can be permitted. In case where revision of ground rent has become due, the revised amount of ground rent will be notified to the lessee for depositing the amount before the execution of the conveyance deed.

9.     In case of mortgaged properties, conversion would be allowed only after the submission of ‘No Objection Certificate’ issued by all the mortgagees/lending banks by the person seeking conversion.

10.    In case of any legal dispute relating to title of the property, conversion shall not be allowed until the legal dispute is settled.

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