A total of 168 houses located in different parts of the city will be converted to freehold property, directed Raipur Development Authority (RDA) chief executive officer Amit Kataria on Wednesday.
The houses in Devendra Nagar, Indraprasth duplexes in Raipura, Shyam Prasad Mukherjee Housing Scheme in Hirapur, Sarona, Raipura and Boriakhurd will be converted to freehold after the RDA collects conversion fee, declaration fee and other charges from the allottees.
After this decision, freeholding of houses constructed in the last 50 years has begun. Fifteen HIGs, 10 MIGs, 58 duplexes in Indraprastha, Raipura, 18 flats under Dr Shyam Prasad Mukherjee Housing Scheme in Hirapur, 23 flats in Sarona, 19 flats in Raipura, 25 flats in Boriakhurd will be converted to freehold property.
According to the directions, no conversion fee will be collected from allottees who have houses in Shyam Prasad Mukherjee Housing Scheme in Hirapur, Sarona, Raipura and Boriakhurd. After the freehold, the allottees will not be required to pay ‘Bhoobhatak’ fee every year nor will they need permission from the RDA while selling the property.
Properties constructed by the RDA since 1963 were given on a lease of 30 years in which case the allottee has to some land tax every year. But after Wednesday’s decision, the allottees will have full ownership of the property.
Unlike in lease, a freehold owner can enjoy ownership of the property forever. In comparison to leasehold which usually allows you 99, 60, 30 years or less; after which the land owner (which could be the state govt or another enterprise) will take legal possession of it. Freehold is, thus, more preferable and fetches a higher price when the property is sold. While selling a freehold property, no consent of the government is required. leasehold property has certain restrictions as stated in the grant papers.