Bombay Parsi Punchayet Trustees Split Over Proposal To Convert Leave-And-Licence Arrangements Into Tenancies Amid Transparency Concerns

Mumbai, June 13: A proposal by the Bombay Parsi Punchayet (BPP), one of the largest landlords in the city, to convert certain leave-and-licence arrangements into tenancies has triggered a sharp divide within the seven-member board of trustees, with three trustees publicly questioning the move over concerns of transparency, fairness and legal implications.

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

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 and seeking clarifications at a board meeting in December 2023, no written proposal or responses were provided for more than two years.

Concerns Over Transparency And Policy Clarity
The dissenting trustees have particularly questioned reports that the conversion would initially apply only to licensees occupying flats without deposits, while excluding those who had paid deposits. They argued that any such policy should be implemented uniformly across all eligible residents.

“The leadership of BPP should be guided by wisdom, prudence and transparency rather than political aspirations,” trustee Malia said. “A proposal of such significance demands a clearly articulated written policy, supported by reasoned opinions from qualified experts.”

Malia further alleged that repeated requests for a written proposal remained unanswered for nearly four years before the issue was suddenly pushed through. He also questioned whether approval from the Charity Commissioner would be required if the trust’s rights were diluted.

BPP Defends Conversion Plan
BPP chairman Viraf Mehta rejected claims that deposit-paying licensees would be excluded. He said their cases would be addressed in a second phase after tax-related issues were clarified.

“For those allotted flats without deposits, our statutory auditors have confirmed there are no tax implications in converting licences into tenancies,” Mehta said.

He added that legal opinions obtained by the BPP supported the trustees’ authority to approve the move and that additional clauses would be introduced in tenancy agreements to strengthen enforcement of the trust’s Parsi-only covenant. Mehta also announced a five-year lock-in period and a 20 per cent encashment cap to prevent misuse of tenancy rights.

Scope Of Leave-And-Licence Housing
According to Mehta, around 1,800 to 1,900 of the BPP’s 4,440 flats are occupied under leave-and-licence arrangements, of which only 300 to 400 involve deposits.

“There is no reason to stall the conversion process for the 1,500 licensees currently living without a deposit on a free leave-and-licence basis,” he said.

Trustees Demand Full Disclosure
The dissenting trustees maintain that they are not opposed to the conversion itself, but insist that written proposals, independent legal and financial opinions, and full disclosure of the implications must precede any final implementation.

They have also raised questions over whether major BPP colonies, including the Wadia Baugs, Cusrow Baug, Rustom Baug, Jer Baug, Ness Baug and Nowroze Baug, would be covered under the policy.

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Mehta, however, described the objections as premature, arguing that extending tenancy protection to the majority of licensees should not be delayed while issues relating to the remaining minority are resolved. “We will do it for almost 80 per cent of the licensees first, and the remaining 20 per cent subsequently,” he said.

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