Thousands of residents here have given up their hope to convert their residential leasehold land into freehold because of a faulty procedure.
However, the leasehold plots in Bhubaneswar under the GA Department are hassle free and the owners of these plots of land are being able to convert easily them to freehold.
Two sets of rules exist in Odisha for conversion of residential leasehold Government land into freehold i.e. one for whole of the urban areas of the State excepting Bhubaneswar and Sunabeda and the other for the leasehold plots under the General Administration(GA) Department within Bhubaneswar Municipal Corporation(BMC) area. This violates fundamental right on equality.
As regards the whole of the urban areas of the State excepting Bhubaneswar and Sunabeda, Schedule –VI to the Orissa Government land Settlement Rules,1983 (OGlS Rules) governs the field and similarly in respect of GA Department leasehold plot within the BMC area, the GA Department has issued a Resolution No. 8305 /CA dated 18/07/2003 formulating the scheme for such conversion.
The glaring inconsistencies between the rules are, while Clause -5(b) of Schedule –VI to OGlS Rules stipulates that the conversion fee shall be at the rate of 10per cent of the prevailing market rate / price of the land in case construction has already been made over the leasehold plot and 15 per cent in respect of leasehold plots lying vacant, the Clause-1 of the GA Department Resolution states that conversion fee is 5 per cent of the prevailing rate of premium in respect of the plots on which building has been constructed as perapproved plan and 10 per cent in case of vacant plots.
There is no rational basis for such different rates of conversion fees. Further, the leases in respect of which such conversion fee has been charged by the GA Department are not settled through public auction, whereas land at Rourkela is settled through public auction and at very high premium. In spite of the same, the conversion fee is far too less (half) in comparison to the conversion fee levied under Clause -5 of Schedule –VI of OGlS Rule.
In total there are not less than 8,000 plots only at civil township at Rourkela in addition to thousand of such plots are there at Koelnagar.This is only about Rourkela, throughout Odisha, the number will not be less than 8-10 lakh.
The GA Department Resolution states that the prescribed rate of conversion fee would be applicable even in cases where there is deviation from the BDA/BMC approved plans. The GA Department has also issued a clarification vide Resolution No.20905/CA dated 28/12/2004 clarifying that conversion fees at 10 per cent of prevailing rate of premium will be charged in respect of plots where buildings has been constructed without approved plan or in deviation of the approved plan.
However, Schedule –VI of the OGlS Rules is silent about conversion of leasehold plots into freehold land where construction of building thereon has been made in deviation of the approved plan. The land Allotment Committee (lAC) which is the appropriate authority for allowing conversion in case of urban area of Rourkela disapproves of conversion of leasehold plots into freehold if construction of building has been made in deviation of the approved plan.
There is no reasonable basis for disapproving conversion if construction has been made in deviation of the approved plan, particularly when the appropriate authority under the Orissa Development Authorities(ODA) Act/ Orissa Municipal Corporation (OMC)
Act is empowered to take action for such deviation/violation of the approved plan. The GA Department Resolution dated 18/07/2003 as well as the clarification Resolution dated 28/12/2004 clearly specifies that conversion of leasehold into freehold will not take away the right of the competent authority under the ODA Act/ OMC Act to initiate action for such violation and further payment of conversion fee will not extinguish any liability that may independently accrue on account of violation of provisions of the ODA Act and OMC Act.
The effect of this is due to non approval of such plots by lAC, the concerned owner is deprived of its rights to mortgage / sale, resulting in violation of fundamental right to property and causing huge financial hardship and losses. There are not less than 600 such cases at Rourkela.