State Government to charge unearned income from sale of CM Quota Flats

Sale, rental of low cost flats is prohibited till 5 years from date of purchase. Sale of such flats by the beneficiary after 5 years, but within 10 years, will attract government charge of 250 per sq ft.

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State Government to charge unearned income from sale of CM Quota Flats

CM Quota Flats: Obtaining a low-cost flat from discretionary quota and earning huge premium from its sale will become a thing of past as the State Government has decided to charge unearned income from sale proceeds of such an apartment. After such a sale, the beneficiary of these flats (popularly known as CM quota flats) will not be entitled to any other discretionary quota flat or low cost housing scheme floated by Government or its agency.

Besides, the State Government has delegated the power to sanction sale or transfer of such flats to concerned District Collectors of urban agglomerates to put an end to red tape and inordinate delay in granting sanction to sale or transfer. The State Government has been allotting the flats forming part of 10% or 5% quota under the Urban Land Ceiling Act and 2% quota under the said regulations.

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The allotment of flats was put at the disposal of Chief Minister and distributed from his discretionary powers. After March 20, 2014 judgement of Bombay High Court, the allotment process came to a standstill as the High Court directed the Government to devise a fair, transparent procedure and maintain a list of proposed beneficiary and make it open for objections.

As per guidelines issued by Urban Development Department, there will be total prohibition on sale or transfer of 5% quota flat by any beneficiary. Even giving such a flat on rent has been prohibited for first five years. If the beneficiary of such a low cost flat obtained through discretionary quota desires to sale the flat, then he will have to pay Rs 250 per sq ft as transfer cost to the State Government in case the incident of sale happens between 5 to 10 years from date of allotment. If such a flat is transferred after 10 years, even then Rs 125 per sq ft unearned income will be recovered from such a beneficiary. Even for rental income, the government will charge Rs 125 per sq ft. The rates are applicable for flats situated in Nagpur, Nashik, Solapur, Sangli, Kolhapur.

For the 5% flats in Mumbai, the Government will charge Rs 500 per sq ft for sale between 5-10 years and Rs 300 per sq ft for sale after 10 years and for rental purposes a flat rate of Rs 250 per sq ft will be charged.

These low cost flats are situated on prime properties particularly in cities like Mumbai, Thane and Pune, Nagpur where land cost is sky-rocketing. According to erstwhile rules, legal representatives of historical figures in Maharashtra, freedom fighters or spouses of freedom fighters or their legal representatives, War heroes, past and present members of Vidhan Sabha and Vidhan Parishad, Artists, Journalists were eligible for these flats. The tenth category was of persons who do not belong to any of the nine categories, but those who had a dire need of residential premises.

Source Link- http://thehitavada.com/Encyc/2017/10/27/State-Government-to-charge-unearned-income-from-sale-of-5-per-cent-quota-apartments.aspx

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