A family buying a resale flat in Kharghar assumes it owns the land under the building, until the paperwork reveals a lease from the City and Industrial Development Corporation with decades left to run and a transfer fee due to the authority on every sale. For most of Navi Mumbai, that is the normal state of ownership. A new CIDCO decision to allow leasehold residential plots to convert to freehold changes the calculus, and a 2026 buyer needs to understand what the change does and does not do.

The short answer. Navi Mumbai was built by CIDCO on land it allotted mostly on long leasehold, which means owners hold a lease rather than absolute title and have historically needed CIDCO permission and a transfer charge on each resale. CIDCO has now approved a voluntary scheme to convert eligible leasehold residential plots to freehold for a one time fee. The gain is cleaner title and easier future transfers. The trade-off is the upfront conversion cost and the fact that the benefit depends on the plot's category and an executed lease deed, so it is not automatic for every flat.

The conversion is voluntary and applies to plots where a lease deed has already been executed, covering allotments through tendering, CIDCO built housing schemes and rehabilitation schemes, with a one time fee payable to the authority.

Why is so much of Navi Mumbai on leasehold land?

Navi Mumbai was planned and developed by CIDCO, a state agency, on land it acquired and then allotted to builders, societies and individuals. To retain control over planned development, CIDCO allotted most of this land on long leasehold rather than freehold. The result is that a large share of Navi Mumbai homes sit on a lease, typically running many decades, with CIDCO as the underlying lessor.

In practice this has meant that transferring a flat often required CIDCO's transfer permission and a charge, and that the owner held a leasehold interest rather than absolute ownership. For most residents this was a background technicality until they tried to sell, mortgage or redevelop. Understanding it matters because the tenure affects both the transfer process and, over the very long term, what happens as leases age. It sits alongside the checks in the Maharashtra online property registration guide.

What exactly has CIDCO changed?

CIDCO has approved a scheme allowing eligible leasehold residential plots to be converted to freehold on a voluntary basis, in exchange for a one time conversion fee paid to the authority. The scheme covers plots where a lease deed has already been executed, including those allotted through tendering, through CIDCO built housing schemes, and through rehabilitation schemes.

Converting to freehold means the owner moves from holding a lease to holding absolute title to the land, which removes the recurring dependence on CIDCO permission for future transfers and simplifies the ownership record. The word voluntary is important: nothing forces an owner to convert, and the decision is an economic one weighing the fee against the benefit. Buyers should confirm the current tenure of any flat and whether the plot has converted or remains on lease, since the answer shapes the transfer process and the paperwork.

How does freehold differ from leasehold for a buyer?

The core difference is control and simplicity. A freehold owner holds the land outright and can transfer it without the lessor's routine involvement. A leasehold owner holds a time bound interest and has historically needed CIDCO's transfer approval and charge on a sale, plus attention to the lease term over the long run. Neither tenure makes a flat unsellable, but freehold generally makes the process cleaner.

For a buyer this affects three things: the ease of future resale, the comfort of lenders, and the paperwork at purchase. A converted freehold plot means fewer moving parts on your eventual exit. A leasehold plot is still perfectly ownable, but you inherit the transfer process and should factor any CIDCO charges and permissions into your plans. The distinction is not a reason to avoid Navi Mumbai, it is a detail to price and verify.

The two tenures compared, so a Navi Mumbai buyer can weigh what conversion actually buys.

Who is eligible and what does conversion involve?

Eligibility centres on the plot having an executed lease deed and falling within the covered categories, which include tendered allotments, CIDCO built housing and rehabilitation schemes. The owner applies to CIDCO, pays the assessed one time conversion fee, and on completion the tenure is recorded as freehold. Because the fee and process depend on plot category, location and size, the economics differ from one property to another.

For a buyer eyeing a resale flat, the practical questions are whether the society or plot has converted, whether conversion is available for it, and what the fee would be if you wished to convert later. Where the seller has already converted, you inherit a cleaner title. Where they have not, you should understand the cost and process before assuming you can convert on your own timetable. Confirm all of this on the official CIDCO website rather than on a broker's assurance.

Does conversion change stamp duty or registration?

Conversion to freehold is about tenure, not about escaping the state's transaction taxes. When you buy the flat, stamp duty and registration still apply on the sale, computed the Maharashtra way on the agreement value or the ready reckoner value, whichever is higher. The conversion fee to CIDCO is a separate cost from the stamp duty you pay the state on the purchase.

A buyer should budget these as distinct line items and not assume one offsets the other. Plan the purchase taxes using the Maharashtra stamp duty and registration guide, and treat any CIDCO conversion fee as an additional, optional cost that buys you cleaner tenure. Conflating the two leads to an under budgeted purchase, which is a common and avoidable error in a market where several charges land at once.

What should a buyer verify before purchase?

Start with the tenure on the title documents. Confirm whether the plot is leasehold or freehold, whether a lease deed has been executed, and whether conversion has been applied for or completed. If the flat is still leasehold, establish the CIDCO transfer process and charge that will apply to your purchase, and factor it into your offer.

Then run the ordinary due diligence, since tenure is only one layer. Check the society's conveyance status, the encumbrance record, the approvals and the developer or society paperwork. The checklist below sequences the CIDCO specific and the standard checks so nothing falls through the gap between them. In Navi Mumbai, the buyer who understands tenure at the offer stage avoids the unpleasant surprise of discovering a transfer charge or a lease detail only at the sub registrar's counter.

Run this seven point check before buying a CIDCO plot flat in Navi Mumbai.

1. Confirm on the title documents whether the plot is leasehold or freehold.
2. Check whether a lease deed has been executed and whether conversion has been applied for or completed.
3. If still leasehold, establish the CIDCO transfer process and charge that will apply to your purchase.
4. Estimate the one time conversion fee for the plot if you plan to convert later.
5. Budget stamp duty and registration separately from any CIDCO conversion fee.
6. Verify the society's conveyance status, encumbrance record and approvals independently.
7. Confirm eligibility and current status on the official CIDCO website, not a broker's assurance.

Is the conversion good news for Navi Mumbai buyers?

On balance, yes, with a caveat. The option to convert to freehold gives owners a path to cleaner, simpler title and removes a long standing friction on resale and redevelopment. Over time, a market where more plots are freehold is a more liquid and transparent one, which benefits buyers as much as sellers.

The caveat is that the benefit is not free or automatic. It depends on eligibility, it carries a fee, and it remains voluntary, so buyers must still check each property's tenure rather than assuming Navi Mumbai is now uniformly freehold. Named plainly, the trade-off is a real upfront conversion cost against a cleaner long term title. For an owner who plans to hold and eventually sell or redevelop, that is often a cost worth paying, but it is a decision to make with the numbers in front of you.

Frequently asked questions

Why is Navi Mumbai land mostly leasehold?

CIDCO, the state agency that planned and built Navi Mumbai, allotted most of its land on long leasehold rather than freehold to retain control over planned development. As a result many homes sit on a lease with CIDCO as lessor, which historically meant needing CIDCO permission and a charge to transfer a flat on resale.

What does CIDCO's freehold conversion scheme do?

It lets eligible leasehold residential plots convert to freehold on a voluntary basis for a one time fee paid to CIDCO. It covers plots with an executed lease deed, including tendered allotments, CIDCO built housing and rehabilitation schemes. Conversion gives the owner absolute title and removes routine CIDCO involvement in future transfers.

Does converting to freehold reduce my stamp duty?

No. Conversion changes the land tenure, not the state's transaction taxes. When you buy the flat, Maharashtra stamp duty and registration still apply on the agreement or ready reckoner value, whichever is higher. The CIDCO conversion fee is a separate, optional cost that buys cleaner tenure, and should be budgeted as its own line item.

Should I only buy a freehold flat in Navi Mumbai?

Not necessarily. Leasehold flats remain perfectly ownable, and you can often convert later. What matters is verifying the tenure at the offer stage, understanding any CIDCO transfer charge if the plot is still leasehold, and pricing that into your decision. A converted freehold plot simply gives you a cleaner title and an easier future resale.

Last updated 2026-07-05. PropNewz Team.