Maharashtra Cabinet on Tuesday cleared the decision to introduce a Bill allowing interest amount on delayed compensation for land acquisition to be paid at a single rate, which will be one per cent higher than the repo rate for banks.
The Right to Fair Compensation and Transparency in Land acquisition, Rehabilitation and Resettlement Act, 2013 provides for the payment of interest at the rate of 12 per cent as per Section 30(3) and nine per cent and 15 per cent as per Section 72 and Section 80, in case of delay in payment of land acquisition compensation to the land owners.
“However, this used to burden the government exchequer and increase the original cost of the projects. Now, by changing this interest rate, if there is a delay in paying the land acquisition compensation, interest will be paid on that amount at a single rate. This rate will be one percent more than the interest rate for banks,” said an official from the Revenue department.
A bill in this regard will be introduced in the legislature.
The Cabinet also cleared the decision to change rules of lease of immovable properties in municipal corporations, councils, panchayats and industrial towns.
The rules regarding lease, renewal and transfer of immovable properties have been framed on November 6, 2023. In a bid to bring uniformity in the transfer of properties in all urban local bodies in the state, Maharashtra Municipal Councils, Nagar Panchayats and Industrial Towns (Transfer of Immovable Property) (Amendment) Rules, 2025 will be framed on the lines of the Municipal Corporation Property Transfer Rules.
The properties are classified as residential, educational, charitable, public, commercial, and industrial. According to the revised rules, the lease rate of properties for residential, educational, charitable, and public use will not be less than 0.5 percent of the current market value (ready reckoner). Also, the lease rate for properties for commercial and industrial use will not be less than 0.7 per cent of the market value.
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The valuation, lease rate and security deposit of these properties will be determined by a five-member committee headed by the District Collector of the respective districts. Objections and suggestions will be invited regarding these rules and then a final notification will be published.
The meeting also approved the implementation of the Abhay scheme to increase the collection of outstanding property tax by waiving penalties for the collection of property tax in the municipal councils, nagar panchayats and industrial town areas in the state.
Members of local bodies can remove chairman
The members now have the power to remove the chairman of municipal councils, municipal panchayats, and industrial towns from the office.
Earlier, in the process of removing the chairman from office, a proposal with the signatures of 50 per cent of the elected members was sent to the district collector. After that, action was taken at the government level to remove the mayor from office.
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Instead, now a proposal with the signatures of two-thirds of the elected members will be sent. On which the district collector will have to hold a special meeting within ten days and take a decision through voting.
