Mumbai: A sharp divide has emerged within the Bombay Parsi Punchayet (BPP), one of Mumbai's largest landlords, after three of its seven trustees publicly opposed a proposal to convert Leave and Licence (L&L) agreements into permanent tenancies for nearly 4,500 trust-owned flats across the city's Parsi baugs.
Open Letter Warning
In an open letter published in a community newspaper on Sunday, trustees Anahita Desai, Hoshang Jal and Adil Malia criticised a resolution, passed in May 2026 through Chairman Viraf Mehta's casting vote, to replace the long-standing Leave and Licence system with tenancy agreements. They warned that the move could undermine a housing framework that has protected the community for over five decades.
The trustees argued that permanent tenancy could weaken the "Parsi-only" covenant governing the baugs, potentially allowing non-Parsi occupants to remain indefinitely through inherited or transferred tenancy rights. They cited long-running legal disputes involving non-Parsi families residing in colonies such as Cusrow Baug and Jer Baug as evidence of the complications associated with tenancy.
Historical Context
Desai told The Free Press Journal that the Leave and Licence system was introduced after rent control laws granted statutory protection to tenants, making it difficult for the trust to regain possession of its properties.
Of the BPP's housing stock, around 1,900 flats are currently under Leave and Licence agreements, while the remainder are tenanted. Trustees supporting the proposal argue that converting all residents to tenancy would provide greater security by removing the uncertainty of licence renewals.
Chairman's Reassurances
Mehta dismissed the concerns, saying all issues raised by the dissenting trustees had been addressed. "I have assured the three trustees that a 'Parsi-only' covenant will be incorporated into the tenancy agreements. All legal safeguards will be secured in the interest of the community," he said. He added that converting security deposits into donations would strengthen the trust's finances and that stamp duty was a statutory payment to be borne by beneficiaries.
The dissenting trustees also questioned the timing of the proposal, noting that it was introduced just a year before BPP elections. They further alleged that residents could face stamp duty costs ranging from ₹3 lakh to ₹30 lakh and claimed that many licensees, including those who had paid substantial security deposits or lived in certain Wadia Baugs, would be excluded from the scheme.
The proposal has divided the community. Dr Viraf Kapadia, a resident of Godrej Baug, supported tenancy, saying it offered residents greater protection, particularly when trustees are elected periodically. Others defended the existing Leave and Licence system, arguing that permanent tenancies could effectively remove community-owned flats from circulation, reducing housing opportunities for future generations of Parsis.
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