10 Jan 2017: The Bombay High Court on Monday directed the state government to decide on extending the lease of the Mazgaon plot on which Prince Aly Khan Hospital stands, and allow redevelopment. The hospital and adjoining buildings are in urgent need of repairs.
The court asked the government to respond within two weeks on whether it would extend the lease for the next 30 years, and accept the redevelopment premium.
The compound houses the hospital, a school and 14 other buildings. The Trust has moved the court after Mhada sought a no-objection certificate from the government for redevelopment.
While the government is asking the Trust to execute a 30-year-old lease, the Trust says it has a lease of 99 years, and that a decree confirming the same has been passed by the high court.
Rafiq Dada, senior counsel for the Trust, argued that a petition challenging the renewal of the lease for 30 years is pending. He also offered to deposit funds towards a two-year lease, along with the redevelopment premium to ensure redevelopment commences. However, the government argued that since 2002, when a 99-year lease ended, the lease has not been renewed, though rent is received annually.
However, to generate revenue, the government has decided to extend the lease of the properties on its land for 30 years to get the current market rate. The bench said it would be in the interest of all if the government accepts the demands for fees and allows extension of lease until such time as the court decides on all similar cases.
Previously on Ismailimail…