Patna, Nov. 5: The state cabinet on Wednesday gave its nod to the revised “Digha Land Acquisition Settlement Scheme 2014”, giving relief to residents of Digha and Rajiv Nagar areas in the city.

The decision was taken in light of Digha Land Acquisition Settlement Act 2010 and Digha Land Acquisition Settlement Rules 2014, giving unauthorised occupants of 680 acres rights of land belonging to Bihar State Housing Board in the two colonies (Digha and Rajiv Nagar). The scheme fixes ‘afresh’ the rate at which land would be settled.

“The cabinet revised the settlement scheme under which residents of the two areas (Digha and Rajiv Nagar) will have to pay a sum to settle land in their favour. As per Minimum Value Register (MVR) rate, they would now have to deposit lesser settlement charge,” cabinet department’s principal secretary Brajesh Mehrotra told reporters here.

MVR is the government rate for land registration. The existing MVR for Digha and Rajiv Nagar is Rs 27 lakh per cottah. There are around 10,000 houses in the two localities — Rajiv Nagar and Digha. Influential people like IAS and IPS officers, judicial officers, politicians and other heavyweights inhabit there.

As per an earlier settlement scheme the cabinet passed on August 19, 2014, occupants having less than two cottahs of land have had to pay 25 per cent of the MVR within 90 days of demand note generated by the Bihar State Housing Board. Occupants of over two cottahs would have to pay 50 per cent of MVR. Similarly, if the plot were located on the main or principal road, the occupant would have to deposit 75 per cent of MVR as settlement charge. Settlement is 100 per cent of MVR for commercial plots.

But the settlement charge was revised after the cabinet amended the scheme. Residents would now have to pay less for settlement. Under the revised scheme (cleared by the cabinet on Wednesday), the slab has now been fixed on the pattern of income tax.

There is no change in the settlement to be paid by occupants of two cottahs as they will have to pay 25 per cent of MVR within 90 days. But, occupants having upto five cottahs of land will have to pay 50 per cent of MVR and those having more than five cottahs would have to pay 100 per cent.

So, if a resident (of Digha or Rajiv Nagar) has 10 cottahs of land, he or she would have to pay 25 per cent of MVR as settlement for first two cottahs, 50 per cent of MVR for next three (charged on three to five cottahs) and then 100 percent on next five cottahs (charged on six to 10 cottahs).

Similarly, if the plot is located on main or principal road, the occupant will have to deposit 75 per cent of MVR as settlement charge on land of upto five cottahs and 100 per cent of settlement charge will be realised from those having more than five cottahs of land.

There is no change for occupants having commercial plots, as they will be charged 100 per cent of MVR. The decision comes into effect the day urban development and housing department notifies it.

In another decision, the cabinet gave its nod for taking land on perpetual lease for infrastructure development and public purposes such as construction of educational institutions, roads, electricity, stadium/embankment/canal/land bank, Mehrotra said.

The cabinet chaired by Jitan Ram Manjhi took 27 decisions on Wednesday.