G.R. Dt. 14th December, 2025 – Department of Revenue and Forest – Sub- Revising Lease Rent for Long Term Leasehold Government Lands let out in Greater Mumbai
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Revising Rates of Lease Amounts in case of Government lands in Mumbai City and Mumbai Suburban District let out Long Term Lease where lease tenure has not concluded, after a certain period, and Revising directions vis-à-vis Renewal of Lease issued under Government Resolution Dated 12/12/2012.
Government of Maharashtra
Department of Revenue and Forest
Government Resolution No:- Jamin -2505/Pra.Kra. 405/J-2
Camp Office, Barrack No. 10, Old Hyderabad House,
Civil Lines, Nagpur,
Dated:- 14th December, 2025
Vide:-
[1] Government Resolution in the Department of Revenue and Forest, bearing No:- Jamin-2505/Pra.Kra.405/J-2, Dt. 12.12.2012.
[2] Government Resolution in the Department of Revenue and Forest, bearing No:- Jamin-2505/Pra.Kra.405/J-2, Dt. 05.05.2018.
[3] Cabinet Decision in the Meeting of the Hon’ble Cabinet held on 11/12/2025.
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Preface:-
Under Government Resolution in the Department of Revenue and Forest, bearing No:- Jamin-2505/Pra.Kra.405/J-2, Dated 12/12/2012, a Revised Policy has been prescribed for the Renewal of concluded Leases on the Government lands situated in Greater Mumbai (Mumbai City District and Mumbai Suburban District). Under this Policy, directions have been issued to compute the total value of the lands held on lease at the rate applicable to open lands as per the Rates prescribed for such properties under the Annual Statement of Market Rates published by the Department of Stamps, each year. Moreover, in view of the decision of the Hon’ble Bombay High Court in this regard, directions were issued under the Government Resolution in the Department of Revenue and Forest, Dated 12/12/2012 to charge the Lease Amount at a specific Rate on 25 percent Government share, regard being had to 25 percent share assigned to the Government out of the valuation in its capacity as the land owner and 75 percent share being assigned to the Lease Holder.
02. However, in Greater Mumbai, there are some Government lands which are let out on long term lease for a tenure exceeding 30 years (e.g. 90 years, 99 years and 999 years), but lease of such lands has not yet, concluded. The Terms and Conditions of the Lease of such Government lands let out on long term tenure incorporate provisions for the Revision of Lease Rates after a specific period. There is a vast disparity between the Revised Computed Rate worked out after the prescribed lease period of 30 years in case of long term leases, which have not concluded and the Rate computed as per the provisions of the Government Resolution in the Department of Revenue and Forest, Dated 12/12/2012 in case of leases which have already expired. Consequently, it gives rise to a sense of injustice amongst the Long Term Lease Holders where lease tenure has not concluded. Hence, it has become imperative to take a Policy decision in case of long term leases in Mumbai City and Mumbai Suburban District, of which lease tenure (e.g. 90 years, 99 years and 999 years) has not concluded.
03. In case of long term leases, where minimum 30 years period is over and the date on which the Annual Lease Rates are to be revised falls on or after 01/01/2012, the Government is of the opinion that instead of 100% of the total valuation of the concerned property at the rate applicable to open land with effect from 01/01/2012, it would be appropriate to take into consideration 25 percent valuation as Government share. Moreover, it would be appropriate to fix and recover the Revised Amount of Lease on 25 percent valuation at the Rates specified in the Government Resolution Dated 12/12/2012 and Government Resolution Dated 05/05/2018. If Policy is fixed in this manner, it would do equitable justice to all. If Government were to receive such cases, there would not be any difficulty in taking a decision. Moreover, court cases would not arise. Furthermore, presently some cases yield very low Lease Amount; hence, upon fixation of Lease Amount at a Revised Rate the Revenue is likely to be augmented.
Hence, taking into consideration the formula laid down by the Hon’ble Bombay High Court (25% Government share for a long term lease), which was discussed in the Government Resolution, Dated 12/12/2012, it would be just and proper in cases of lease holding persons/bodies who have been allotted Government lands on leasehold basis for 90, 99 and 999 years and whose 30 years lease period has expired to fix the Ground Rent after 30 years and for this after 11/12/2025, has resolved to make minor modifications to the Government Resolution in the Department of Revenue and Forest, Dated 12/12/2012.
Government Resolution:-
In view of the factual scenario described in the Preface and the formula laid down by the Hon’ble Bombay High Court (25% Government share for long term lease) which was discussed in the above referred Government Resolution, bearing No:- Jamin-2505/Pra.Kra.405/J-2, Dated 12/12/2012, the Revised directions are hereby issued to take following steps while charging Ground Rent for the Government lands in Greater Mumbai allotted on lease for a tenure exceeding 30 years, where the Lease has not yet, concluded, but the transfer of leasehold rights has been effected, as well as in case of lands, where the lease tenure has concluded and the Original Lease Holder has transferred the Leasehold Rights in favour of any other person/body:-
(1) In Greater Mumbai, there are some Government lands which the Government has allotted for a tenure exceeding 30 years (e.g. 90 years, 99 years and 999 years), but the lease, whereof, has not yet concluded. The Terms and Conditions of some of these Government lands let out on long term Lease incorporate provision for carrying out Revision of Lease Rates after a specific period. In case of such long term leases, after completion of 30 years tenure, if the date on which the Annual Lease Rate is to be revised falls up to 31/12/2011, then the Lease Amount should be charged at old Rate up to 31/12/2011 and with effect from 01/01/2012, the Ground Rent should be charged on 25% of the total valuation of the concerned property, being the Government share, at the Rate applicable to open land. If the date of Revision falls after 31/12/2011, then Ground Rent should be charged for such Lease by taking into consideration 25% Government share out of the total valuation prevailing on the relevant date at the Rate applicable to open land. Moreover, the Revised Amount of Ground Rent should be fixed and recovered on 25 percent valuation at the rate specified in the Government Resolution Dt. 12/12/2012 and Dt. 05/05/2018. In this regard, the concerned District Collector should obtain prior permission of the Government before passing any order.
(2) Where the Original Lease Holder has transferred the leasehold rights in the property let out on Lease by the Government in favour of any other person/body and a Registered Instrument is available for such transfer and the actual possession of the land has been transferred, then under the prevailing Government Policy, the unearned income should be recovered from the person who is in possession of the land and the Lease should be transferred in his favour. Where a Registered Instrument is not available, but the transfer of leasehold rights and the transfer of possession of the land is established from a document of Registration available with a Competent Authority (e.g. Registration Certificate of the Competent Authority, if the Co-operative Housing Society/Charitable Body is registered), then presuming the transfer of leasehold rights to have taken place on the relevant date of Document of Registration, the unearned income should be computed and the leasehold rights should be transferred in favour of the person who is in actual possession of the land. Moreover, the arrears of Lease Amount, along with the Regular Lease Amount should be recovered from the person in whose name the leasehold rights are to be transferred. However, in such case, the concerned District Collector should obtain sanction of the Government vis-à-vis breach of conditions.
(3) Where the Lease of a property as described in Paragraph (2) above, has expired any time before the 31st December, 2011, then in such case, steps should be taken as per sub-para (c) of para (b) of the Government Resolution Dated 12/12/2012. However, where the Lease is slated to expire after 31st December, 2011, then in such case, the Ground Rent should be charged at old Rate up to the 31st December, 2011 and with effect from 01/01/2012, the same should be charged as per the provisions of the Government Resolutions Dated 12/12/2012 and Dated 05/05/2018. Moreover, the date on which the Lease concludes, the Lease should be renewed for 30 years. With effect from the date of Renewal, the Revised Lease Amount should be fixed as per the provisions of Government Resolutions Dated 12/12/2012 and Dated 05/05/2018.
(4) The provisions of this Policy shall be applicable with effect from the date of this Government Resolution. Moreover, the provisions of this Government Resolution shall also apply to the pending cases as on the date of the Government Resolution where Lease Amount is to be paid at Revised Rates with reference to Sr. No. 1 above. Moreover, those cases in which the Rates of Lease Amount have already been revised after a specified period as per the Terms/Conditions of the Lease and the Ground Rent has been recovered at the Revised Rates, the provisions of this Policy shall apply at the time of next fixation of Rates.
2. This Government Resolution has been issued pursuant to the decision taken by the Cabinet in its Meeting Dated 11/12/2025.
3. This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Computer Code Number is 202512141605121919. This Government Resolution has been attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra,
SANJAY AUDUMBAR DHARURKAR – Digital Signature
[Sanjay A. Dharurkar]
Deputy Secretary, Government of Maharashtra
Copy:-
[1] The Secretary to the Hon’ble Governor of Maharashtra, Raj Bhawan, Mumbai,
[2] The Additional Chief Secretary to the Hon’ble Chief Minister, Mantralaya, Mumbai,
[3] The Private Secretary to the Hon’ble Deputy Chief Minister and the Minister (Finance), Mantralaya, Mumbai,
[4] The Private Secretary to the Hon’ble Deputy Chief Minister and the Minister (Urban Development), Mantralaya, Mumbai,
[5] The Private Secretary to the Hon’ble Minister (Revenue), Mantralaya, Mumbai,
[6] The Private Secretary to the Hon’ble Minister of State (Revenue), Mantralaya, Mumbai,
[7] The Hon’ble Chief Secretary, Maharashtra State, Mantralaya, Mumbai,
[8] The Additional Chief Secretary (Finance), Mantralaya, Mumbai,
[9] The Additional Chief Secretary (Department of Housing), Mantralaya, Mumbai,
[10] The Additional Chief Secretary (Urban Development-1), Mantralaya, Mumbai,
[11] The Principal Secretary (Department of Law and Judiciary), Mantralaya, Mumbai,
[12] All Mantralaya Departments,
[13] All Divisional Commissioners,
[14] All Municipal Commissioners,
[15] The Settlement Commissioner, Maharashtra State, Pune,
[16] All District Collectors,
[17] The Inspector General of Registration, Maharashtra State, Pune,
[18] The Principal Accountant General (Accounts & Entitlement), Maharashtra (1), Mumbai/Maharashtra (2), Nagpur,
[19] The Principal Accountant General (Audit), Maharashtra (1), Mumbai/Maharashtra (2), Nagpur,
[20] All Joint Secretaries/Deputy Secretaries in the Department of Revenue and Forest, Mantralaya, Mumbai,
[21] Select File – Desk – Jamin -02, Department of Revenue and Forest, Mantralaya, Mumbai.
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[Text Translated by Adv. Prakash Manohar Chalke
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