70,000 Societies to Get ‘Deemed Conveyance: Tax Relief and Incentives for Self-Redevelopment
Mantralaya Times News Network, Mumbai: The Revenue Department has taken a major step to resolve the long-pending issue of ‘Deemed Conveyance’ for around 70,000 housing societies across the state. Revenue Minister Chandrashekhar Bawankule has instructed officials to directly record the housing society’s name in the ‘Other Rights’ section of the Property Card or 7/12 extract for societies where conveyance has not yet been completed.
There are approximately 1,15,000 registered housing societies in the state, out of which nearly 70,000 are yet to complete their conveyance. If a developer fails to transfer the ownership rights of the land and building to the society, the legal process of ‘Deemed Conveyance’ is available. However, because this process is time-consuming, many societies have remained stuck for years. Consequently, a decision was made to streamline the process through coordination among the Revenue, Co-operation, Settlement, and Registration departments.
Simplified Agreement Formats Instructions were also given during the meeting to remove hurdles in self-redevelopment. Eligible societies not covered under the Unified Development Control and Promotion Regulations (UDCPR) were directed to receive tax concessions and a 10% incentive in line with the 2019 Government Resolution (GR). Furthermore, directions were issued to draft simplified templates for ‘Work Contracts’ and ‘Development Agreements’. The Housing Department was also instructed to immediately submit a proposal regarding the expected 4% tax relief from the Finance Department.
Collection of Tax from MHADA Societies to Stop
Non-agricultural (NA) tax for cooperative housing societies under MHADA has already been abolished. However, it was pointed out in the meeting that recovery is still ongoing in some areas. Instructions were issued to effectively enforce the government’s decision and stop collecting this tax immediately.
