Companies in Pune and Pimpri-Chinchwad cities accused of illegally using concessional land for residential purposes, notices issued to 70 companies
Pune, 16th March 2023: Around 70 companies in Pune and Pimpri-Chinchwad cities have been found to have started residential use of land without paying the required transfer fee of 15% of the current market value while changing the zone of concessional lands under Section 20 of the Urban Land Ceiling (ULC) Act. This has resulted in a loss of revenue of around Rs 150 to 200 crores. The district administration has started issuing notices to all these companies after the investigation.
MLC Shrikant Bhartiya had raised a question about this during the ongoing legislative session, prompting the Urban Development Department of the State Government to seek information from the Revenue Administration. The investigation revealed that around 70 companies in Pune and Pimpri-Chinchwad cities had changed the zone of concessional lands and started residential construction without paying the required transfer fee. This has resulted in a loss of revenue for the state government.
The lands given concession under Section 20 for industrial use in places like Hadapsar, Gultekdi, Erandwana, Bopodi, Sangamwadi, Kothrud were made available for industrial use. However, these lands were converted into residential construction by changing the zones without paying any transfer fee to the state government.
In 1997, the state government approved the zoning of around one thousand concessions under Section 20 for industrial use, allowing their residential use as well. However, it was mandatory to deposit 15% of the transfer fee of the land with the state government before using the lands for residential purposes after payment of rezoning charges. But it has been revealed that landowners have siphoned off government revenue by changing zones interchangeably without paying transfer fees.
The state government had earlier charged 100% of the land’s recalculated transfer fee for rezoning the land, but in 2007, it gave a discount of 50% in transfer fee instead of 100%. In 2019, it was decided to charge 15% of the transfer fee of the ready reckoner rate, providing a discount. However, landowners have been found to have changed the mutual zone without paying the transfer fee.
The district administration has started issuing notices to companies that have violated the rules.
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