The City and Industrial Development Corporation (CIDCO) will be implementing the Amnesty Scheme, 2024, after considering the challenges and problems faced by the residents who have taken up constructions on not more than one plot after paying additional lease premium (ALP) on bungalows and row houses. The decision has been taken following an order from the Chief Minister Eknath Shinde.
Details of the amnesty scheme
According to the amnesty scheme, the buildings in the CIDCO area for which occupancy certificate/lease deed /transfer of deeds were kept on hold for the recovery of the compensation, the state government has decided to give the occupancy certificate without paying the compensation amount. This will directly benefit 650 housing societies and in the next few years, will benefit the new buildings coming up in the city. The obligation to pay the recovery fee was included in the contract.
"CIDCO has been directed to carry out the occupancy certificate process by separately recovering the excess amount under the amnesty scheme. This decision has been taken to resolve the pending problems of citizens without having to bear the financial burden. This will directly benefit many common flat holders. Additionally, concession in additional lease premium (ALP) for plot development will also help to get the stalled projects on track," Chief Minister Eknath Shinde said.
"decision taken by CM will speed up development of various projects"
Welcoming the move, the Vice Chairman and Managing Director of CIDCO, Anil Diggikar said, "The decision taken by the chief minister will speed up the development of various projects. However, I appeal to more citizens and developers to take advantage of this amnesty scheme."
In a case filed under Section 18 of the Land Acquisition Act, 1894, calculation of Additional Lease Premium (ALP) to be levied for the extension of the construction period will be calculated at the old rate as per the judgment passed by the civil court and for the period thereafter it will be calculated at the revised rate.
A strategic decision has also been taken to reduce the additional cost. The excess amount as well as additional lease charges will be recovered from the respective landowners/farmers or developers (as mutually agreed between them). Recovery of surcharge will no longer be linked to the occupancy certificate. Henceforth, the recovery of excess amount will be done separately.
Who can claim 50% discount?
The plot holders whose plots have not been developed within the prescribed period and are liable to pay the additional lease charges up to March 31, 2023, will be given a 50% discount under the ‘Amnesty Scheme’ if they pay the amount paid by March 31, 2024.
Excluding government and religious plots, additional lease charges levied for the extension of the construction period from April 1, 2023, will be calculated as per the prevailing SBI PLR rate. If the landholder does not pay the additional lease charges for the construction period of the relevant year, interest on the additional lease charges at the rate of 18% shall be levied.
Henceforth all plot holders (irrespective of the construction extension period granted earlier) by CIDCO will be extended only for two years after the expiry of the original construction period by charging additional lease charges. After that, the plot agreement will be cancelled and the plot will be taken back by the planning body.
Additional lease charges payable for extension of construction period for plots where building occupancy certificate is pending due to administrative reasons is discounted as per the date mentioned in the ‘Construction Completion Certificate’ submitted by the architect. Similarly, calculation of additional lease charges for extension of construction period will be done as per project stage filed by the project architect with RERA. For plots on which infrastructure facilities are not available, the construction period will be calculated from the date infrastructure facilities are provided.
A policy has also been devised to regularise all such buildings where more than one flat is constructed on a bungalow/row house plot. For amnesty scheme, online application should be made by visiting www.cidco.maharashtra.gov.in and other necessary documents should be submitted to the concerned CIDCO office. It has been made mandatory to pay the additional lease fee amount by March 31, to avail the benefit of the scheme.
CIDCO’s Amnesty Scheme 2024
- Implementation following Chief Minister Eknath Shinde’s directive
- Aims to address challenges faced by residents with constructions on a single plot after paying additional lease premium (ALP) for bungalows and row houses
Occupancy Certificate Relief
- Buildings in CIDCO area facing occupancy certificate delays due to compensation recovery will now receive it without paying the compensation amount.
- Directly benefits 650 housing societies and future buildings, alleviating financial burdens for citizens.
Financial Facilitation
- CIDCO directed to carry out occupancy certificate process while separately recovering excess amounts under the amnesty scheme
- Chief Minister emphasises resolution of citizens’ problems without financial strain
Additional Lease Premium (ALP) Calculation
- Calculation of ALP for construction period extension filed under the Land Acquisition Act will follow the court judgment
- A strategic decision to reduce additional costs by recovering excess amounts and lease charges separately
