The West Bengal government has allowed the conversion of leasehold land to freehold.
Issuing a notification, the state’s land and land reforms department allowed conversion of leasehold land settled for 30 years or 99 years lease period, including Kolkata “khasmahal land” and that of in various industrial estates and parks under the WBIDC, WBIIDC, and WBSIDC.
Moreover, the land settled for tea tourism and allied business activities under the tea tourism and allied business policy will also be allowed to be converted to freehold.
As per the notification issued on July 10, for a lessee of 99 years, 15% of the current market price of the land will be charged for conversation.
For lessee of less than 30 years, 70% of the current market price of the land is determined by the authority. For assignee, it would be 25% of the current market price of the land.
“It is a welcome move by the government of West Bengal to allow the conversion of land on a freehold basis from leasehold. It had been a long standing proposal from all sorts of industries to allow the government allotted lands or vested land on freehold, which is going to be allowed,” said Sushil Mohta, president of Credai West Bengal.
According to Mohta, chairman, Merlin Group, the step is showing a pragmatic approach of the government.
“It is also a win-win situation. The government gets higher revenue and for the allottees of land the bank loans will become easy. Subsequent transfer of the land/properties will also now be made possible by having the title as freehold,” he pointed out.
BNCCI president Debashish Dutta said the new fee structure for converting leasehold hand to freehold is a welcome move for the industrialists of West Bengal. This step will encourage industrialists to buy land plots in the state.
