Verdict on Bandra Lease Rents: High Court upholds RR rates, rejects 5-year revision

The Bombay High Court has recently upheld the state government's decision to increase lease rents in Bandra based on the Ready Reckoner (RR) rates. However, the court ruled against the periodic revision of rents every five years, emphasising that lease terms should remain consistent throughout.

In a verdict on July 10, the court resolved multiple petitions by Bandra housing societies contesting government resolutions from 2006, 2012, and 2018. It highlighted that these societies had long enjoyed significant portions of prime Bandra land virtually rent-free.

The court acknowledged that current rent payments, between ₹6,000 to ₹2,000, were modest considering the locality's desirability. It emphasised that these adjustments, though significant, were not unjustifiably high.

Rejecting claims of excessive hikes, the High Court underscored that the government's aim was a reasonable return on its land, rather than profiteering. It concluded that while fairness dictated reasonable charges, the state was not obligated to provide charity. The HC also noted that since 1951, when their leases were renewed, the societies have been paying rent fixed then.

In quashing the provision for periodic rent revisions, the court reinforced the sanctity of lease agreements, affirming that contractual terms must be respected by both parties without unilateral changes.