Public bid for trust land

The sale of a prime plot of land in Kalina, Santa Cruz (East) belonging to the A. H. Wadia Trust admeasuring 5,122 sq m has come under the scanner of the Bombay High Court after the initial bid for the plot was quoted as a mere Rs 1.91 crore and was later valued at Rs 51.46 crores, as per a report in the Hindustan Times (HT) dated July 3, 2008. On July 2 a division bench of Justice S. B. Mhase and Justice Ashutosh Kumbhkoni ordered a fresh bid to gauge its current market value as "the quoted price seems to be abnormally less.”

Located in Kole village near the Western Express Highway, the plot had been leased to one Sakharam Patil in 1938. Patil used the plot for cultivating rice until 1984, by which time it had been extensively encroached on by over 250 hutments. In 2004 the Wadia Trust approached the charity commissioner stating that they wanted to sell the plot and submitted a valuation report quoting its price as Rs 1.5 crore. Bids were called for in 2005 and the highest bidder, Kalpataru Homes Private Limited was awarded the land at Rs 1.91 crore, as per the HT report. At this juncture Patil’s grandson, Pandurang, claimed deemed ownership of the property under the Bom­bay Tenancy and Agricultural Land Act. His counsels argued that he was willing to buy the property at Rs 2 crore, which was higher than Kalpataru’s bid.

The charity commissioner, not satisfied with the price, called for fresh bids for the plot at market rate and Kalpataru Homes once again bid the highest at Rs 51.46 crores. Counsel for Pandurang’s brother Dattaram, the second petitioner, said his client was ready to take the property above that price, and was willing to deposit Rs 1.65 crores to participate in the bid. This, however, was not taken on record by the court. The charity commissioner’s counsel argued that under the provisions of the law it was the right of the charity commissioner to invite bids and hold auctions. The High Court disagreed and asked its own officer, the prothonotary, to release advertisements inviting fresh bids. The existing bids have not been disqualified, however. "All the bids will be subject to the final outcome of the petition,” clarified the bench. The Indian Express reported on July 4, 2008 that the court will decide whether bidders have to deposit 25 percent or 75 percent of the price to participate in the auction.