MUMBAI: Almost a month after the BMC budget for 2025-26 announced that the estate department has finalised a policy to develop various plots under the Vacant Land Tenancy (VLT) for public purposes and convert them into leases wherever possible, the proposal was approved.
On Monday, a standard operating procedure (SOP) was also approved for processing VLT-to-lease conversions. The BMC circular addressed the revisions in the policy regarding the leasing of vacant land.
Approved by the administrator, the updated policy applies to proposals for developing or leasing vacant land for public purposes. The policy and SOPs are available on the BMC website. The circular is also addressed to civic officials, including additional and deputy municipal commissioners, city engineers, and executive health officers.
In his budget speech, the BMC chief had said the policy would facilitate the development of certain land parcels. BMC expects to generate Rs 2,000 crore revenue over the next four years through a one-time premium and annual ground rent.
Mumbai has around 3,600 VLT plots, mostly located in the island city in areas like Dadar, Sion and Parel, and measuring 200-500 sq m. According to civic officials, these plots currently house social institutions, petrol pumps, religious organisations, banks, and private companies, while many have also been encroached upon.
A BMC official said, “After converting the VLT property into a lease, the VLT holder would also be able to develop it, which isn’t allowed now. Those VLT holders who convey their willingness for conversion shall apply on plain paper along with documents to the Estate Office of the concerned ward within the next seven days.” A one-time premium will also be payable, which is around 62.5% of the ready reckoner rate.
Source Homevior.in
