Madhya Pradesh Government on Thursday approved a policy allowing renewal of lease of land, including  residential plots now being used for commercial purposes.

The move will benefit five lakh people in the State, Public Relations Minister Narottam Mishra told mediapersons after the State Cabinet meeting.

"The State Cabinet today approved a policy to renew the lease (called patta in local parlance) of plots including those which were allotted for residential construction but are now being used for commercial purposes. Such plot holders can renew their lease as per the land use mentioned in the Development Plan," he said.

The administration believes that continuous income to the Government is being blocked as a result of refund of leases and violation of the conditions of the lease. Also, the lessee who wants to sell, donate, or transfer his lease is not able to transfer it. To solve this situation, the revenue department has set up a new system.

In cases of permanent lease renewal and violation of condition, the District Collector or Additional Collector authorised by him will be the authorised officer. After the expiry of the lease period, the amount of suppression money will be deposited for the delay on the application submitted. In such cases only after the trial of violation of conditions of the lease or the adoption can be extended for renewal.

The site inspection will be conducted by the adjutant officer or Tehsildar, Nazul.

This officer will give their report regarding use of land rent, outstanding amount, violation or adoption status, as per the intended purpose of the prevailing development plan deposited by the lessee on the basis of which the authorized officials will be able to renew the lease for the next thirty years. Before the renewal, the annual land rent should be fixed again so that it will be six times the final fixed land rent.