PCMC Opposes Freehold Conversion of Leasehold Plots, Seeks Premium to Prevent Loss

There has been a demand from public representatives to convert leasehold properties within the jurisdiction of the Pimpri Chinchwad New Town Development Authority (PCNTDA) into freehold properties. However, the civic administration has opposed this move.

Municipal Commissioner and Administrator Shekhar Singh has taken a clear stand that industrial plots and public sector lands that were leased, developed, and later transferred to the municipal corporation should not be converted into freehold. He has conveyed this stance to the state government through a formal letter.

In 2021, the PCNTDA was merged into the Pune Metropolitan Region Development Authority (PMRDA). The properties of the authority were divided between the PimpriChinchwad Municipal Corporation (PCMC) and PMRDA. The ownership and control of leased and developed plots, including encroached land reserved for public utilities, have been handed over to the municipal corporation. This includes 7,707 residential plots, 837 industrial plots, and 1,426 other residential plots—a total of 9,970 plots now under the municipal corporation’s control.

The authority had developed these properties about 40 years ago and had allotted them on a 99-year lease. Due to this, property holders face technical difficulties during redevelopment, inheritance registration, and transfer processes. This issue was also raised during the monsoon session. Meanwhile, the municipal corporation has firmly opposed converting these leasehold properties into freehold. Municipal Commissioner Shekhar Singh has clearly stated that industrial plots and public sector lands leased and transferred to the PCMC should not be made freehold. If the freehold process is to be considered, then a premium amount must be charged so that the municipal corporation does not suffer any financial loss. This recommendation has been mentioned in his letter to the state government.

The municipal corporation now holds ownership of land measuring 333,535 square metres. However, much of this area is encroached upon. Hence, when considering converting such encroached plots to freehold, the imposition of a premium is necessary, as stated in the letter.Municipal Commissioner Shekhar Singh said, “For converting leasehold plots transferred to the civic body into freehold, a premium amount should be charged. This will prevent financial loss to the corporation. Whatever decision the government takes on this, we will implement it.”