Maharashtra Reopens Government Land Allotment for Housing Societies After 15-Year Gap

New policy brings back land allotment for housing societies with auctions, reservations and stricter rules

MUMBAI: Maharashtra has reopened the process of allotting government land to cooperative housing societies after a gap of more than a decade. The new policy sets out a fresh process for allotment and also lays down rules for eligibility, flat size, membership and future property transactions.

The move could benefit several groups, including government employees, journalists, artists, sportspersons, backward communities and persons with disabilities.

A long-pending change

Government land was earlier allotted to cooperative housing societies under government resolutions dated July 9, 1999 and May 25, 2007.

However, after a controversy in 2010, the allotment of land to new cooperative housing societies was stopped.

The government has now decided to restart the process with a different method of selection.

Auction replaces lottery

Under the new system, district collectors will prepare details of available government plots and invite applications through public advertisements.

The societies will go through a technical and financial bidding process. The society making the highest bid will be selected.

The base price will be 2.5 per cent of the market value of land in Mumbai city and suburbs and 5 per cent in the rest of Maharashtra.

The land will initially be given on a 30-year lease. Conversion to Class-I occupancy will be allowed only after the lease period is completed.

Space for different sections

The policy has also made provisions for representation from different sections of society.

At least 20 per cent of members in every housing society receiving government land will have to be from backward classes, while 5 per cent will have to be persons with disabilities.

From the available plots, 40 per cent will be for the general category and 15 per cent for state government, local body and corporation employees.

10 per cent will be reserved for Scheduled Castes, Scheduled Tribes and nomadic tribes. Another 10 per cent will be for writers, artists, sportspersons and journalists.

The remaining categories will receive 5 per cent each for Central government employees; serving or former personnel of the armed forces; elected and former MPs and MLAs; freedom fighters and their heirs; persons with disabilities; and economically weaker sections.

Flat size by income

The government has also revised the income and carpet-area limits in line with the Seventh Pay Commission.

For Group-D employees, the carpet area is up to 300 sq ft, with a monthly income limit of Rs 50,000.

For Group-C employees, the carpet area is 450 sq ft, with monthly income between Rs 50,001 and Rs 1 lakh.

For Group-B employees, the carpet area is 650 sq ft, with monthly income between Rs 1,00,001 and Rs 1.5 lakh.

For Group-A employees, the carpet area is 1,076 sq ft, with no income ceiling.

Stricter property rules

The policy also brings additional safeguards for government-allotted housing.

Joint membership of husband and wife will be compulsory in societies receiving government land.

If dummy or benami flats are found, district collectors can take them over without compensation.

Permission from the district collector will also be needed for transfer of flats, mortgaging them for bank loans or redevelopment.

These conditions will need to be followed by societies and members throughout the period of ownership.

Legal background

Revenue Minister Chandrashekhar Bawankule said the revised policy was prepared following a petition filed by the Sanjay Gandhi Cooperative Housing Society in Kolhapur before the High Court and the Supreme Court’s observations on November 25, 2024.

The decision brings back a government-land allotment system that had remained closed to new cooperative housing societies for more than a decade.

What it means

For eligible societies, the policy creates a new opportunity to apply for government land. At the same time, the auction system and ownership conditions bring more defined rules into the process.

Applicants will need to carefully check their eligibility and understand the conditions before applying. The government, meanwhile, will have to ensure that the process remains clear, fair and properly monitored.

Editor’s Closing Insight

Government land is a public resource, so every allotment carries a responsibility. The reopening of this process is a positive opportunity for eligible housing societies after a long gap.

The real test will now be implementation. If applications are handled fairly, rules remain clear and decisions are taken on time, the policy can give genuine applicants a better chance to secure housing.

By Sana khan
Executive Editor, Realty Quarter
Mumbai