CONVERSION OF LEAVE LICENSE TO TENANCY
As per their Election promise, Armaity Tirandaz and Trustees have received 34 Applications requesting Conversion of their Leave License to Tenancy from the Estate Dept. of BPP.
Out of these 34 applicants, 3 are from Wadia Baugs and remaining 31 from other Baugs. Since Mr. Nusli Wadia has requested to keep this major policy decision on hold till it is first discussed and approved at the next meeting of the Wadia Committee of Management, administration has been requested not to take up the three Applications of the Wadia Baugs at present.
Hence only 31 Applications have been forwarded to Legal Department for scrutiny and checking whether any applicant has a legal suit filed against him or any other cause for disqualification of the conversion to Tenancy.
Once the file is returned from the Legal Dept., the valid Applications will be placed before the Board of Trustees for their consideration on merit and if approved then the Tenancy/Lease Agreement will be typed out incorporating the extra 8 clauses drafted by a Rent ACT Advocate to better protect the Parsi only Covenant and thereafter on payment of requisite Stamp Duty and Registration charges, the same will be Executed and Registered between the Trustees and Licensee but now converted to Tenant.
It is expected that there will be several glitches in the initial stage in implementing the Conversion but once the mode is standardized, the conversion will be seamless.
Licensees may opt to convert their licenses into a month to month tenancy (in which case a very high stamp duty would be payable in certain cases) and Tenancy Agreement can be executed immediately containing all the clauses of Parsi only covenant, or execute a Lease Agreement for two years (entailing a far lower stamp duty), the Lease Agreement to contain all the Clauses of Parsi only Covenant. After the expiry of two years, the tenant would continue to enjoy the protection of the Rent Act, as per advice given to the Trustees by Advocates well versed in tenancy laws.
Source: Parsi Junction
