Maharashtra Finalises Auction Policy for Housing Society Land Allotments

The Maharashtra government has finalised a revised policy for allotting government land to cooperative housing societies, restarting a process that remained suspended since 2010. The revised framework, prepared under the initiative of Revenue Minister Chandrashekhar Bawankule, replaces the previous lottery system with an auction process.

Under the new rules, district collectors will identify available government plots and invite bids through public advertisements. Allotments will be determined through technical and financial bids, with plots awarded to the highest bidder. The base price for bidding is set at 2.5 per cent of the market value of land in Mumbai city and its suburbs, and 5 per cent in other parts of Maharashtra.

Instead of transferring ownership rights, the state government will now allot land on a 30-year lease. Following the completion of the 30-year lease tenure, the land will be eligible for conversion into Occupant Class-I status.

The policy outlines specific reservation quotas across various beneficiary categories. State government, local body, and municipal corporation employees have been allocated a 15 per cent reservation of plots. A 10 per cent quota has been set aside for Scheduled Castes, Scheduled Tribes, and nomadic tribes, while another 10 per cent is reserved for writers, artists, sportspersons, and journalists. Additionally, five per cent quotas each have been earmarked for Central government employees and defence personnel, elected representatives, freedom fighters and their heirs, persons with disabilities, and economically weaker sections.

Income and carpet-area ceilings have been restructured in alignment with the Seventh Pay Commission. Group-D employees earning up to Rs 50,000 per month will be eligible for 300-square-foot homes, while Group-C staff earning up to Rs 1 lakh can apply for units up to 450 square feet. Group-B personnel are eligible for up to 650 square feet, and Group-A officers will be eligible for 1,076 square feet without an income cap.

The framework mandates a minimum of 20 per cent representation for backward communities and 5 per cent for persons with disabilities within housing societies. District collectors have been empowered to seize dummy or benami flats without providing compensation. Furthermore, all pending old allotment proposals will be closed, barring instances where letters of intent were already issued.