Court Upholds Land Lease Rent Hike in Posh Mumbai Locality
Bombay HC rejects petitions challenging land lease rate hike in Bandra, says move not arbitrary
Real EstateMaharashtraBombay High CourtLand LeaseReady ReckonerReal Estate MaharashtraJul 11, 2024
The 'Ready Reckoner' rate, also known as the 'Circle Rate', is the minimum valuation fixed by the state government for properties in a specific area.
A division bench of Justices B.P. Kolabawala and S.R. Sundaresan observed that while the government's proposals could not be revised every five years, the lease rent should remain the same throughout the entire term of the lease agreement.
The court dismissed petitions filed by several housing societies in Bandra, challenging the government's proposals in 2006, 2012, and 2018 to revise the lease rent.
The court noted that these societies had been given large tracts of land in prime locations in Bandra almost free of cost. It observed that if one looked at the amount these societies were paying for the government land, it would not be considered excessive.
The government had adopted a policy decision to use the 'Ready Reckoner' rate to determine the lease rent payable.
Various societies had claimed that the proposals were illegal, as they sought to increase the lease rent by '400 to 1900 times', which was 'exorbitant'.
Frequently Asked Questions
What is the 'Ready Reckoner' rate?
The 'Ready Reckoner' rate, also known as the 'Circle Rate', is the minimum valuation fixed by the state government for properties in a specific area.
Why did the Bombay High Court uphold the government's decision?
The court ruled that the move was not arbitrary, considering Bandra is a high-end real estate area.
What was the challenge raised by the housing societies?
The societies claimed that the proposals were illegal, as they sought to increase the lease rent by '400 to 1900 times', which was 'exorbitant'.
What is the significance of the court's ruling?
The ruling upholds the government's policy decision to use the 'Ready Reckoner' rate to determine the lease rent payable.
What is the impact of the decision on the real estate sector?
The decision is likely to have a significant impact on the real estate sector, particularly in high-end localities like Bandra in Mumbai.
Related News Articles
Unlocking Opportunities in the Real Estate Insurance Market: Trends, Insights, and Projections
Discover the latest trends, challenges, and opportunities in the real estate insurance market, featuring key players, regional analysis, and market segmentation.
Pune Real Estate Market Sees 50% Jump in Registered Transactions, Average Home Price Reaches Record High
The number of real estate transactions in Pune has increased significantly, with registered transactions surging by 50% in the April-June 2024 quarter.
Haryana and Jammu & Kashmir Assembly Election Dates Announced by EC; Results to be Declared on October 4
The Election Commission of India has announced the dates for the Haryana and Jammu & Kashmir assembly elections. The polls will be held in a single phase on October 21, and the results will be declared on October 4.
Century Textiles Acquires 10-Acre Land in Mumbai for ₹1100 Crore, Expects ₹14,000 Crore in Revenue
Century Textiles plans to develop the land through its real estate subsidiary Birla Estates, expecting ₹14,000 crore in revenue from the project.
Virgo Daily Horoscope for September 14, 2024: A Temporary Setback in Assets and Real Estate Deals
Be cautious with real estate deals today, as a temporary decline in assets may occur. However, this setback will be short-lived.
DLF Q2 Earnings Skyrocket: Net Profit Surges to ₹1381 Crore
DLF, India's leading real estate firm in terms of market capitalization, has reported a remarkable surge in its Q2 net profit, jumping over twofold to ₹1381 crore. The company, primarily engaged in the development and sale of residential and commercial pr