Bombay Parsi Punchayet Begins Registering Tenancy Agreements For Colony Flats Amid Opposition From 3 Trustees

Mumbai: After opposition from minority trustees of the Bombay Parsi Punchayet (BPP) to converting certain leave-and-licence arrangements in its housing colonies into tenancies, the trust has begun registering tenancy agreements for flats.

First Deeds Registered

The first set of tenancy deeds was registered on Tuesday by the BPP, one of Mumbai’s biggest landlords, with an inventory of around 4,000 housing units.

BPP chairman Viraf Mehta said the trust would proceed with registrations as and when residents were ready to pay no the stamp duty. The exercise is being carried out in two phases, with the first covering flats allotted free of cost.

Deposit Flats In Second Phase

“We will take tax opinions on the balance deposit flats, and then take it from there,” Mehta said.

The dispute centres on a resolution approved at a BPP board meeting on June 9. Trustees Anahita Desai, Hoshang Jal and Adil Malia raised reservations about the policy, arguing that it lacked a comprehensive written framework and could create inequities among residents.

Issue Dates Back To 2022

According to the trustees, the issue first surfaced during the 2022 BPP elections, when a group of candidates pledged to convert all leave-and-licence arrangements into tenancies if elected. They contend that despite raising concerns, they received neither a written proposal nor responses for more than two years.

Malia said the trustees were unaware of the registrations. “The act is illegal and we will take every possible action. Under law, you cannot take action until the case has arisen,” he said.

Mehta Defends Majority Decision

Mehta maintained that the decision had been taken after due diligence and by a majority of trustees.

“If they see it otherwise, it is a dissent on a decision that has been passed by majority. It is up to them if they want to move the court,” he said.

1,500 Flats Allotted Free

Around 1,500 community flats spread across 16 colonies, including Cusrow Baug in Colaba, Godrej Baug on Nepean Sea Road, Khareghat Colony on Hughes Road (NS Patkar Marg) and Rustom Baug in Byculla, are allotted free of cost. About 400 are given on a deposit basis.

Mehta said not all residents wanted to opt for tenancy, while some sought the arrangement as a safeguard against potential litigation. He said the move was intended to protect both beneficiaries and the trust.

Resident Backs Tenancy Move

Dr Viraf Kapadia, a Godrej Baug resident who holds a leave-and-licence agreement after paying a deposit, said he would have to offer the deposit to the trust as a donation and pay stamp duty for the new tenancy agreement.

Kapadia said he hoped to shift to a tenancy arrangement as it would create a right.

“Justice delayed but not denied. The community congratulates the trustees for taking the bold step in the larger interest of the Parsi community,” he said.

Mehta said the tenancy arrangement would protect residents from potential litigation and argued that leave-and-licence agreements had originally been used to protect the Parsi-only covenant and prevent non-Parsis from claiming tenancy rights in community colonies.

“Earlier the BPP never did this. But now, in the last 10, 15 years, we've seen how power can be misused. The licensee can be squeezed more,” he said.

He added that the new tenancy agreements contained safeguards, including clauses and a notarised affidavit signed by the beneficiary.

The BPP said that most homes in its colonies were already under tenancy and that the new scheme was therefore not unprecedented.

Mehta also disputed claims that stamp duty could rise to Rs 20 lakh or Rs 30 lakh. He said that, barring larger flats in Khareghat Colony and Godrej Baug, the amount for smaller flats was around Rs 5 lakh to Rs 7 lakh.

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