Patna: A proposal to convert 432.07 acres of Patna Regional Development Authority (PRDA) leasehold land and 3,631 properties into freehold assets is set to come before a special meeting of the Patna Municipal Corporation Board.
The proposal has already been cleared by the Empowered Standing Committee. A revised version, incorporating changes sought after earlier objections and clarifications, is being placed before the Board for final approval.
Properties Across Key Patna Areas
The proposed policy would cover PRDA properties in areas including Rajendra Nagar, Shrikrishnapuri, Kankarbagh, Maurya Lok Complex, Parivahan Nagar and Beur.
If approved, holders of leased plots, buildings, flats, shops, kiosks and other properties would be able to seek conversion of their leasehold holdings into freehold properties.
The move is expected to simplify property transactions and provide greater clarity over ownership rights.
Conversion Fee Linked To MVR
Under the proposed policy, owners will have to pay a conversion fee calculated on the prevailing Minimum Value Rate (MVR) of the property.
For properties held by the original allottee or their legal heir, the proposed conversion fee is 10% of the prevailing MVR.
For properties that have already been transferred to another person, classified as a second allottee, the fee would be 12% of the prevailing MVR.
Properties whose lease deeds have not yet been registered will first have to complete the lease registration process before applying for freehold conversion.
Easier Transactions And Bank Loans
Once converted, the properties would be easier to sell or transfer, obtain bank loans against and mutate in official records.
The policy is also expected to generate one-time revenue for the Municipal Corporation through conversion fees.
However, conversion to freehold would not remove the obligation to pay regular ground rent to the Municipal Corporation.
3,631 Properties Across 432 Acres
According to the details of the PRDA assets, the Municipal Corporation has 432.07 acres of acquired land in different parts of Patna.
The largest share is in Rajendra Nagar, with 198 acres, followed by Shrikrishnapuri with 64 acres and Mithapur with 59.69 acres.
Other major holdings include 38.94 acres in Parivahan Nagar, 27.70 acres in Buddha Colony and 18.03 acres in Beur.
The 3,631 properties proposed for conversion comprise:
- Plots: 1,367
- Buildings: 806
- Flats: 841
- Shops and kiosks: 575
- Offices: 37
- Guest houses: 4
- Brick kiln: 1
PRDA has allotted land on 66-year and 99-year leases since 1952.
Policy Revised After Court Rulings
The proposed freehold policy follows legal disputes over the transfer of PRDA leasehold properties.
The Municipal Corporation had previously sought a 50% share of the profit, or a mutation fee, when leasehold properties were sold or transferred. Several allottees challenged the condition before the Patna High Court.
The court subsequently struck down the Corporation’s condition requiring a 50% share of the profit.
The revised policy also seeks to address issues involving unauthorised construction, violations of lease conditions and financial losses faced by the Municipal Corporation.
The special Board meeting is expected to determine whether the revised framework receives final approval, paving the way for the proposed conversion process.
