Bhubaneswar, Sept. 29: Consolidated revenue land in urban areas, including the capital city, can now be sold in parts with the state cabinet today taking a decision in this regard.

As per the existing norms, consolidated land (formed through process of amalgamation of smaller holdings by the revenue department in the ’70s and ’80s), measuring less than an acre, could not be split into smaller patches and sold.

The government has decided that in cities such as Bhubaneswar, Cuttack, and Berhampur, land could be split into smaller plots and sold.

The cabinet also decided to settle nearly 54,000 cases pertaining to undervaluation of land during registration.

It has floated a one-time scheme under which a person can pay 60 per cent of the principal amount (decided by the government) and interest to settle the case in his favour. Official estimates reveal that because of undervaluation, the government had incurred losses to the tune of Rs 187.42 crore.

The cabinet’s decision to allow purchase of land under consolidation in smaller parts has invited mixed reactions from real estate developers’ community.

The move makes purchase of smaller plots from the consolidated land easier. Those who have already purchased land from a consolidated plot under plotting scheme can convert their ownership status legally.

Some builders have predicted that once purchase of smaller patches from consolidated plots becomes a reality, getting bigger patches of land for the development of mega housing schemes by a single developer might become difficult.

Senior member Real Estate Developers Association (REDA), Anup Mohapatra, said: “Let us suppose there are four brothers owning a large chunk of consolidated plot. Then, as per the old rule, it is not legal for any one brother to sell any portion of the land. One buyer has to purchase the entire land from all four brothers.

“With the change in the rule now, one can buy smaller plots from one or more individual owners.'

Another real-estate developer Manoranjan Ray pointed out: “In case of multiple owners, buyers faced major problems. One of the owners could become a stumbling bloc in the selling of plots. Now, more land will be available for housing schemes.'

President, Orissa chapter of Confederation of Real Estate Developers Association (India), D.S. Tripathy, welcomed the move, but warned: “Fragmentation of big pieces of land could make less land available for mega housing projects in the future.'

“Once selling of land in parts is made legal, big players may not be able to get the required land for their projects. However, it will be a boom for small investors,’’ he added.