CIDCO to Allow Freehold Conversion of Leasehold Residential Plots in Navi Mumbai

The City and Industrial Development Corporation (CIDCO), Navi Mumbai's special planning authority, has announced that residential plots allotted on a leasehold basis will now be eligible for conversion into freehold. The move offers a long-awaited legal option for thousands of homeowners to secure full ownership rights over their plots, which were previously governed under lease terms.

CIDCO has historically developed 14 nodes across Navi Mumbai, including Vashi, Nerul, Belapur, Kharghar, Ulwe, Panvel, and Dronagiri. Since inception, most of the residential and commercial plots in these areas were granted under long-term leasehold agreements. These arrangements, which required renewal, approvals for transfers, and ongoing lease obligations, have been a source of concern for property holders, particularly regarding resale, inheritance, and redevelopment.

In its official statement, CIDCO clarified that the conversion scheme is voluntary and will apply only to plots where lease deeds have already been executed. It covers a wide spectrum of allotments, including those allotted through the tendering process, CIDCO-built housing schemes, and residential plots granted under the 12.5% and 22.5% rehabilitation schemes for project-affected persons.

To operationalize the policy, CIDCO has constituted a committee that will scrutinize each application for freehold conversion. Plot owners will need to submit specific documents and pay a conversion fee determined as a percentage of the ready reckoner rate applicable to the plot. This rate is issued annually by the Maharashtra government to reflect the prevailing market value of land across different regions.

CIDCO officials clarified that, in cases where lease agreements include a clause for the recovery of unearned income—a charge levied when the value of the land appreciates—the same will be recovered along with the conversion fee. Additionally, for plots initially allotted at concessional or subsidized rates, such as those under social housing or resettlement schemes, applicable additional charges will also be levied.

Once the conversion is approved and the plot attains freehold status, the ownership rights will transfer entirely to the applicant. This means that future transactions involving the property—whether sales, inheritance, or mortgage—will not require prior approval from CIDCO, nor will any transfer charges be imposed by the authority. The land records will subsequently be updated by the Department of Land Records under the Government of Maharashtra, transferring the title to the new freehold owner.

CIDCO has urged eligible homeowners to make use of the opportunity. This move is expected to address long-standing demands from resident groups and property investors seeking clarity and simplicity in property rights. It is also anticipated to ease future redevelopment processes, as housing societies in areas like Vashi, Nerul, and Kharghar that have been eyeing redevelopment will now have access to clearer land titles, easing legal procedures and financing.

Leasehold properties in Navi Mumbai have long posed limitations for their owners. While such leases typically span 60 to 99 years, they often involve restrictions on property transfer, usage changes, or redevelopment unless permissions and charges are paid to the planning authority. Over time, these complexities have discouraged buyers and investors, while complicating title documentation and valuation.

In recent years, other development authorities across Maharashtra, including the Mumbai Metropolitan Region Development Authority (MMRDA), have also introduced similar policies for leasehold-to-freehold conversion in a bid to streamline urban land management and improve clarity for property stakeholders.

The move comes amid ongoing real estate activity in Navi Mumbai, where developers are actively bidding for land parcels in CIDCO auctions, launching residential projects, and expanding commercial zones in anticipation of future infrastructure like the Navi Mumbai International Airport and extended metro corridors.

CIDCO’s decision also follows recent internal policy actions, including the cancellation of plot allotments worth ₹2,000 crore earlier this year over non-compliance and inactivity, and fresh land auctions in Kharghar, Nerul, and Ghansoli attracting major developers such as Godrej Properties and Hiranandani Group.

The freehold conversion policy marks a significant shift in land ownership structures in Navi Mumbai and is likely to impact property values, buyer confidence, and redevelopment plans in the years ahead. The authority has yet to announce the exact conversion fee slabs or the application timeline, but further details are expected to be released in the coming weeks.