Mumbai: Tenants occupying properties leased by the Mumbai Port Authority (MbPA), Life Insurance Corporation of India (LIC), Dena Bank and other public sector undertakings (PSUs) have approached the President of India, seeking intervention against what they have described as “unjust and discriminatory” lease rent policies. An online petition has also been marked to the Prime Minister’s Office.
Eviction Fears
Tenants argue that the ruling has strengthened the application of the Public Premises (Eviction of Unauthorised Occupants) Act, leaving them vulnerable to eviction and steep rent demands.
According to the petition, MbPA controls around 306 hectares of leased land along nearly 25km of Mumbai’s coastline, with about 752 lessees that include residential housing societies, commercial establishments, industrial units and large listed companies. Tenants of LIC, Dena Bank and other PSU lessors affected by the Supreme Court ruling have also joined the plea.
Rent Disparity
The petitioners have alleged that MbPA charges lease rent at 6% of the Ready Reckoner (RR) rate under the Port Guidelines Land Management (PGLM) 2015. They contend that this is disproportionately higher than lease rents charged on adjoining lands under municipal and revenue authorities, with the Collector levying 0.5% of the RR rate and the BMC charging 0.25%, despite properties being located in the same neighbourhoods.
Seeking relief, the tenants have urged the President to impress upon the Government of India the need to amend the PGLM 2015 guidelines, initiate dialogue with affected citizens and evolve a uniform and equitable lease rent framework linked to Ready Reckoner values.
Expiring Leases
Aspi Deboo, a realtor and advisor to a trust owning large land parcels in Mumbai, said that most buildings on Mumbai Port Trust land are nearing the end of their 99year lease period, with many expiring in the next two to three years. “Lease rents were fixed nearly a century ago at a few hundred rupees per year. Once these leases expire, the port wants to charge a percentage of the prevailing land value, which would translate into annual lease rents running into lakhs of rupees – amounts that are simply unaffordable,” he said.
Parvez Cooper, a resident of a Colaba building located on Mumbai Port Trust land, said that the application of the Public Premises Act was never intended for general tenants. “The Public Premises Act was originally meant to deal with misuse of government housing by public servants, not to be imposed on ordinary tenants,” he said. Cooper cited a recent demand notice of Rs268 crore issued to a Colaba building housing elderly residents, calling the levy illegal and unjust.
Several such cases are being handled by Advocate Prerak Choudhary. He said there is a need for the government to consider renewing leases on affordable and reasonable terms. Unless that is done, lakhs will have to live with a fear of a hanging sword over their head.
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