Renewal of leases

Inaction and apathy on the part of Nagpur Improvement Trust (NIT) to renew the lease of over 7800 plots is causing loss of crores of rupees to the state exchequer as well as to the NIT. This was revealed in a Public Interest Litigation (PIL) filed by Parivartan Bahu-uddeshiya Sanstha through its Treasurer Adv. Raju Mehadia in the Nagpur Bench of the Bombay High Court.

The petitioner, a non governmental organisation, has claimed that the lease of 8333 plots owned by NIT has expired since long but the NIT has failed to renew them thus causing loss of administrative charges, stamp duty and registration charges. The total loss to NIT on account of administrative charges alone comes to about Rs 60 lakh, alleged the petition. The state government too has lost huge revenue on account of stamp duty and registration charges, claimed the petition. The petition further states that NIT is violating the Land Disposal Rules set by Urban Development Department, Govt. Of Maharashtra. As per the rules, NIT grants lease of 30, 60 and 99 years for residential and commercial purposes. Clause 3 of the Indenture of the Lease Deed states that the lessor (NIT) covenants that after expiry of lease period, the lease would be renewed as per the prevailing rules (rules say that the lessee shall apply for renewal within time period). Any breach of the terms entails the respondent to determine the lease and take possession of trust property under clause 14 of the Land Disposal Rules, 1983. Moreover, Clause 15 of the said rule also gives power of forfeiture of lease property and of re-entry to the NIT. Inspite of such wide powers and inspite of the fact that lease of some of its plots has expired some 20 to 30 years back, NIT is sitting silently over its assets worth crores, stated the petition. Further Clause 13 of the Lease Deed states that if the lessee does not comply with any of the requirement or conditions mentioned above, the lease of the plot may be cancelled by the trust or govt., as the case may be, the same may be disposed off in such manner as the trust or govt. may deem fit at the risk and cost of the lessee. Any loss caused to the Trust or Govt. whether on account of premium or ground rent or any other account in consequence of default made by the lessee shall be made good by him and the amount deposited by him shall be liable to be forfeited or appropriated by the government or by the Trust as the case may be towards such loss. The petitioner has further charged that NIT has failed in its duty to protect the public property. It has asked for a direction to respondent no. 1 – Urban Development Department to initiate departmental inquiry against the officers who are responsible for this inaction. The petition has also charged that the NIT trustees have failed to fulfill their obligatory duties. According to the petition, Section 10 (2),(3) and (16) provides for the meeting of the trustees. The trust should sit ordinarily in every month to dispose off the requisite matter in order to achieve the object and purpose of the Act. The Act also provides for the consequences in case of default in attending the meeting by the trustees. The petition has also prayed to direct the respondent no 1. to initiate inquiry against the board of trustees or a person who would be responsible for not taking appropriate action thereby causing loss to the public exchequer and enable to protect public property.


~ by nagpurestate on September 27, 2008.

One Response to “Renewal of leases”

  1. ULC layout lease list, possesion and rules of lease of maharshtra govt. given to NIT

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