PROBLEMS FOR RUSTOM BAUG LEASE RENEWAL

Rustom Baug, built on leased property from the Govt. of India, falls within Land No. 547 and 548 of Mazgaon Revenue Division. Jer Baug is also built on land leased from the Govt. of India for 99 years which has expired sometime in 2012-13.

Orders for Lease payment of Rs.1,64,00,000/ (Rs. 1 crore and 64 lakhs) for the smaller parcel of Rustom Baug Land No. 547 was received last year and an appeal has been filed against it after depositing 25% of lease rent demanded amounting to around Rs. 41 lakhs. Similarly Orders for Lease rent payment of around Rs.3,64,00,000/ (Rs. 3 crores sixty four lakhs) for the Jer Baug land was also received last year and an appeal has been filed against it after depositing 25% of lease rent demanded amounting to around Rs. 91 lakhs.

The Trustees have now received Orders for Lease payment of the larger parcel of land No. 548 of Mazgaon Division.

Part of Rustom Baug falling within the area of the larger parcel of Land No. 548 in Mazgaon Revenue Division admeasures 40329.50 sq. yard i.e. 33720.63 sq. m. The said government property was given to Sir Edward Elias Sassoon and other Trustees of a certain Deed of Settlement dated 23 February 1916 by the Secretary of State, India in Council i.e. the government under a lease agreement dated 10/11/1917 for 99 years from 01/09/1913. The lease agreement of the said property has expired on 31/08/2012.

According to the property statement of the said property today the name of Shapurji Bomanji Billimoria and another 6 (Trustees of the Properties and Funds of the Parsee Panchayat of Bombay) is registered as the lessee.

For the renewal of lease of the above property, the Collector sent a Show Cause notice dated 11/02/2022 in accordance with Section 302 of the Maharashtra Land Revenue Act, 1966, and a hearing was held on 23/02/2022.

On behalf of the lease holder Bombay Parsi Panchayat in the said hearing, Mr. Kali Shroff (Accountant) and Shri. Yusuf Unwala (Accountant) informed that High Court was fixing a fresh election for appointment of new Trustees on 29-5-2022. Accordingly, the next hearing was fixed on 09/06/2022.

In the said hearing on 9-6-22 on behalf of Bombay Parsi Panchayat, Mrs. A.R. Tirandaz (Chairperson of Bombay Parsi Panchayat), Shri. Hoshang Jal (Trustee) and Shri. Xerxes Dastur (Trustee) and their advocate H.N. Vakil were present. The parties filed oral argument. The lessee’s representative was listed as giving two weeks’ time to make written submissions regarding some issues under Section 37A in the lease deed agreement and reducing the amount in the demand notice, after which a decision would be taken in the case.

According to the Government Decision dated 05/05/2018, the ground rent for charitable institutions should be charged at the rate of 0.5 percent of 25 percent of the market value of the land.

Accordingly, the Collector worked out the new Lease Rent payable for the lease renewal as under:

Thus a total amount of around Rs. 10 crores eighty-eight lakhs has to be paid to the Govt.

In case of appeal against this order, an appeal may be lodged with the Maharashtra Revenue Tribunal (MRT) under Section 247 of the Maharashtra Land Revenue Code, 1966.

Even if appeal is filed, it will be admitted only on payment of 25% of the demanded amount which would be about Rs. 2 crores and 72 lakhs.

Last week an appeal was filed and the Tribunal whilst admitting the appeal has ordered that 25% of the Demand be deposited with the Court

Thankfully funds are available with the Wadia Baugs, (which were denied to the BPP), and will be available with WCM for payment to file appeal. Hopefully 25% of the Demand will be paid up next week.

Source: Parsi Junction