Bombay High Court Backs Maharashtra Government's Lease Rent Hike in Bandra
The Bombay High Court has upheld the Maharashtra government's decision to increase lease rent in Mumbai's Bandra, citing the area's high-end real estate status.
Bombay High CourtMaharashtra GovernmentLease RentBandraReal EstateReal Estate MaharashtraJul 11, 2024
A division bench comprising Justices B P Colabawalla and Somasekhar Sunderesan ruled that the rent must remain unchanged for the entire tenure of the lease agreement, contrary to the government's directive to revise it every five years. This decision came in response to multiple petitions filed by Bandra housing societies, challenging government resolutions that revised long-term lease rents.
The court emphasized that these societies have enjoyed prime land privileges at minimal costs for years and that the increased rates are not exorbitant given the context. The ruling is seen as a significant victory for the Maharashtra government, which has been seeking to increase revenue from its prime properties in Mumbai.
Information
The Maharashtra government had issued resolutions revising long-term lease rents in Bandra, citing the area's high-end real estate status. However, several housing societies in the area challenged the decision, claiming that the increased rates were arbitrary and unfair. The Bombay High Court's ruling has now upheld the government's decision, providing a significant boost to its revenue collection efforts.
The Maharashtra government is the governing authority of the state of Maharashtra, India. It is responsible for the overall development and administration of the state, including its revenue collection efforts.
The Bombay High Court is the high court of the Indian state of Maharashtra. It is one of the oldest and most prestigious high courts in India, with jurisdiction over the state of Maharashtra and the union territory of Goa.
Frequently Asked Questions
What was the basis of the Bombay High Court's decision to increase lease rent in Bandra?
The court's decision was based on the Ready Reckoner (RR) rates, which determine the minimum sale price of a property in a particular area.
What was the government's directive regarding lease rent revision?
The government had directed that lease rent be revised every five years.
What was thepetition filed by Bandra housing societies challenging?
The petition challenged the government resolutions that revised long-term lease rents.
What is the significance of the Bombay High Court's ruling for the Maharashtra government?
The ruling is seen as a significant victory for the Maharashtra government, which has been seeking to increase revenue from its prime properties in Mumbai.
What is the Ready Reckoner (RR) rate used for?
The Ready Reckoner (RR) rate is used to determine the minimum sale price of a property in a particular area.
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