234 government bodies, corporates get lease renewal notices

The BMC has sent lease renewal notices to several prominent government offices and corporate establishments in the city that have been occupying properties even after the expiry of their lease agreements. There are at least 234 such institutions.

According to the civic estate department's data, the list of such occupants includes the Royal Western India Turf Club (Mahalaxmi Racecourse), the Indian Hotel Company Ltd (Taj Hotels), Bennett, Coleman and Company Limited (The Times of India), General Assurance of India, Indian Oil, National Insurance, Thomas Cook (India), Century Textiles and Industries, Life Insurance Corporation (LIC), Deutsche Bank, Central Bank, Unit Trust of India, New India Insurance, the Oriental Fire and General Insurance, Nair Hospital, Bank of India and Malabar Hill Hanging Garden.

Vishwas Shanwalkar, Assistant Commissioner (Estates) said, \"We are sending notices to all 234 properties asking them to renew their leases. If this is not done, the process of re-entry will be initiated under which BMC will take possession of the plot.\"

Civic officials said despite being offered the properties at nominal rents, some of these lessees have been tardy in their payments. The annual rent of the RWITC was Rs 5.6 lakh per annum and the lease expired in 2013. Once renewed, the rent will be Rs 20 lakh per year and it will increase by Rs 2 lakh every year.

Taj Hotels paid Rs 9,374 for the entire lease period, which expired on January 12, 2003 and Bennett, Coleman and Company Limited (BCCL) paid Rs 15,166 for its lease period which expired on April 3, 2000. BCCL, however, submitted an undertaking stating it would pay the difference in rent till a new policy was formulated.

Of these 234 properties, 96 are ‘schedule W,’ which are of the state government, 17 schedule ‘V’ (police) properties, one ‘schedule ‘Z’ (governor) and 120 schedule ‘X and Y,’ belonging to the BMC itself. A senior civic official said, “Plots at prime locations have been given on lease at nominal rates. They include lease agreements from 20 years to 99 years. Despite this, agreements were not renewed.”

There are 4,179 plots which have been leased out at nominal rates, including 2,352 residential plots. In some cases, leases have not been renewed since the 1970s.

\"These plots are a major source of income of BMC, but as their agreements have not been renewed for years, the civic body is facing losses of crores of rupees. Along with issuing renewal notice, I have also asked civic authorities to find out if any additional constructions have been made on these plots. They can be regularised by charging a fine,\" said Prakash Gangadhare, chairman of the civic improvements committee.

Several of the plots include heritage buildings, to which no alterations are permitted.