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Saturday, January 30, 1999

Lease licence: High-rises on govt land

Swati Deshpande-Aguiar  
MUMBAI, January 29: Superstar Shah Rukh Khan may not know it, but his bungalow on Band Stand in Bandra, currently under extensive renovation, stands on government land. And so do several multi-storeyed buildings on 47 other plots that line the Mount Mary Road, address to the rich and famous.Mumbai Suburban district Collector Vasant Gavai has blown the whistle on a massive land scam in which plots of land leased to private parties for their own residential purposes were either sold at a profit or commercially exploited by erecting multi-storied residential complexes. So, while the government continued to get measly lease rents of Rs 2,000 per year for these plots, the lessees made crores of rupees in profit by developing them. Gavai is now in the process of issuing show-cause notices to these lessees asking them why they should not be made to forfeit the land.

The land on which Shah Rukh Khan's dream house, Villa Vienna, stands actually covers four large plots, measuring 2446 square metres each. These plotswere leased out to a certain Gulbhai K Dubash some four decades back for his personal residential use by the government and he built a sprawling bungalow here. However, sometime back he sold the bungalow to Shah Rukh at an undisclosed price. At the current property rates, even if one takes the recession in the market into account, the huge villa must have cost Shah Rukh a bomb.But when compared to what other lessees have done with their land, Dubhash's deal looks like a small oversight. K K Porbunderwala, a lessee, has gone to the extent of building a six-storeyed building on a plot measuring 2169 sq m leased to him. This building was built in 1976 when property prices in Mumbai were on the rise. On a nearby plot (survey number B 808) leased out to the Provident Investment Company Ltd a 14-storeyed Zephyr Co-op Housing Society has taken shape. Built in 1971, the residential complex comprises of 43 flats.

Still more enterprising was Shirinbai M A Dadi who was leased five plots (B 831 to B 835). Instead ofbuilding bungalows for which he had sought the lease, he built 15-floor Kanti Apartments comprising 183 flats.The result of all these illegal constructions is that today 1075 families live on this stretch of Mount Mary Road, while government land records suggest that there should be only 48! Most of the land was leased out to well-known personalities. One of them being Lady Navajbai Ratanji Tata. In 1980, on the eight adjoining plots used by her and four others, a 12-storeyed building with 48 flats called Silver Cascade was erected. Several plots leased to the clergy including the Archbishop of Bombay for residential purposes, now house a Church and Retreat House. The Retreat House is spread over 11,266 square metres covering ten plots.

While in most of the cases land was sold off as early as 1965, some of the unauthorised land deals are recent. In fact, construction is currently underway on some of the plots. On plot no. B 867, land leased to Mithabai Furshid, stands Mon Re Pas Co-op Hsg Society - aseven-storeyed building with 14 flats. On the same plot work is currently underway on another building. On the three adjoining plots leased out to Amthujabai A Madraswala seven storeyed Diamond Apartments took shape in 1977 and now work is underway on Sterling Diamond Apartment on the same plot.

``In some cases, the lease expired in 1990,'' Gavai told Express Newsline. In many cases where the lease was renewed, lessees objected to the high lease rent and went to court. ``Around 23 persons filed a petition in the Bombay High Court in 1991-92 challenging the high lease rent. In 1992-93, the Court directed the state government to frame new lease rent rules,'' said Gavai who decided to open old files after he received a few complaints. Almost seven years later, the new rules are yet to be framed. Gavai said lease rent is around eight per cent of the market rate of the land cost. And as most of the leases were given in the early 1900s the rates were very low and so was the rent. The leases were extended once in1950 but rents continued to be low. ``It was only the last time, when market rates touched its zenith of Rs 25,000 per square feet, that the state increased lease rents,'' added Gavai.

Asked why no action was taken for so many years, there were no answers forthcoming from Collector's office. But Gavai said he had already issued stop-work notice wherever construction was underway. He admits that land may not be seized, but explains that the government will at least earn a few crores by regularising the buildings. How much the government finally earns will be another story, though.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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