Renewal of ‘schedule W’ plots gets govt nod

In a significant move that may boost revenue collection, the state cabinet on Tuesday approved the renewal of ‘schedule W’ properties, which had been given on lease by the municipal corporations. The plots, which were earlier leased at nominal rates, will now be given at the current ready reckoner rates in the city. According to the data available with the BMC estate department, the list of such plots include big names such as the Royal Western India Turf Club (Mahalaxmi Racecourse), the Indian Hotel Co Ltd (Taj Hotels), General Assurance of India, Indian Oil and Life Insurance Corporation.

According to the state officials, ‘schedule W’ properties belong to the state government. Under the BMC jurisdiction, there are 160 such plots at prime locations, which had been given on lease to several institutes at nominal rates. The lease duration in the agreements range from 20 to 99 years. Many of these agreements have not been renewed and the lessees continue to occupy the land. “If their lease agreement is renewed at old rates, the state government will suffer revenue losses. Hence, it was decided to renew the lease for a period of 30 years as per the current ready reckoner rates. The lease rates will be amended after 10 years,” said a state official.

The plots have been given for recreational grounds, gymkhanas and to institutes like social organisations, educational institutes, banks, police quarters, insurance companies, oil companies and other big industrial houses. In some of the cases, lease agreements from as back as from 1970 have not been renewed. “These plots are one of the major sources of income for the state government. But as their agreements have not been renewed for years, the state is facing a huge loss of revenues,” said the official.