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Politics and Policy

Property proposals and protests

The proposed sale of the 963-acre community property in Palghar is under dispute

By Parinaz M. Gandhi · April 21, 2013
Is the land being sacrificed when it should be safeguarded? The decision by the trustees of the Iranian Zoroastrian Anjuman (IZA) of Bombay to sell their 963-acre leasehold agricultural land in Palghar has created fissures among the Irani Zarathushtis residing on the western coast of India. Some vociferous and vigilant Iranis are opposed to the proposed sale transaction with Viva Builders Private Limited (that is allegedly linked to land mafia Bhai Thakur) for a consideration of Rs 732 crores. They believe that barring former president Mehrwan Irani, the remaining six trustees are not sensitive to the sentiments of the settlor.
The six trustees — Aflatoon Shokri, Dara Devlaliwalla, Pervez Irani, Sarosh Irani, Khodadad Irani and Gaiv Irani — maintain that their sole intent in liquidating the immovable property is to augment the Anjuman assets lest acquisition orders from the government to procure land for the proposed Oil and Natural Gas Commission (ONGC) plant in Palghar deprive them of their due returns. They clarify that they are not obligated to Viva Builders and are willing to consider any offer that assures better financial returns.
The friction in the seven-member trust board had first surfaced at the executive council meeting of the Federation of the Parsi Zoroastrian Anjumans of India as reported in Parsiana (see "Line of control,” February 7, 2013) when internal correspondence concerning the IZA property was brought into the public domain by Mehrwan. Disappointed with his volte face, the six other trustees succeeded in removing him as president at a specially convened general committee meeting on the evening of April 3 when police protection was sought by the trustees to keep at bay protestors who had been summoned with a text message: "Our land will go and money will also go if we go with Viva (sale)… Come show support and pls forward this to any Irani friend you have.” Around 30 protestors, mainly ladies from Bombay and Dahanu, had assembled on the busy Pherozeshah Mehta Road in Fort whilst deliberations amongst 36 elected and co-opted members were in progress on the second floor office of IZA at Kermani Building.
Jamshed Irani
As conveyed by the six trustees, the special general committee meeting was convened under Rule 29 of The Memorandum of Association and Rules of IZA to pass a resolution to remove Mehrwan from the post of president and trustee as decided at the working committee on March 6. They objected to his working "against the interest of the Anjuman” giving interviews to the Press and circulating letters to outside organizations against the decision taken by the working committee. Mehrwan’s "U-turn” after presiding over meetings when it was decided to sell the Palghar land to Viva was in violation of the "oath of secrecy” given by him to the Anjuman, they maintain.
Trustees claim transparency
The once tight-lipped trustees who preferred the sanctity of their ivory tower were now willing to meet the Press and clear their image that was besmirched in the general and community media. When Parsiana sought a clarification from one of the trustees, four of them — acting president Khodadad, Gaiv, Sarosh and Pervez — spoke with candor at a meeting on April 10 at the IZA office that lasted for nearly three hours. Equally forthright was Mehrwan, after he was ousted as president, at a discussion on April 11 with him and his supporters — wife Benafsha, Ardeshir Irani, Cyrus Irani, Shirin Hormuzdi and Kashmira Irani — that lasted for nearly two-and-a-half hours.
"We are not chors (thiefs),” asserted Khodadad referring to the frequent insinuations that they are misappropriating funds and lacking in transparency. The trustees believe that they have followed the due process of law on being issued a letter by the government in 2011 that the IZA land would be "very suitable…for the prestigious ONGC project.” Having lost over 1,000 acres in the last 50 years, the trustees deemed it necessary to act swiftly and sought a pro bono opinion of a respected Parsi jurist who advised them "to sell the entire land in one go.” As per the revenue department’s assessment, since the 963-acre plot on which the IZA cultivates grass yields an annual income of Rs 30 lakhs, the value of the land was around four lakhs per acre, a contention that was disputed by the trustees.

Mehrwan Irani (left) and Khodadad Irani


After obtaining the necessary sanction of the general committee the trustees decided to invite tenders. They advertised in leading newspapers in Bombay, Delhi, Ahmedabad and Calcutta. There were 11 parties who took the forms of whom five deposited the necessary security of five crore rupees to submit their tenders, Gaiv shows the list. The highest bid was from Viva Builders for 47 lakhs per acre as against the anticipated one crore per acre. At a subsequent meeting Viva Builders were persuaded to increase their offer, which they first raised to Rs 60 lakhs and thereafter to Rs 75 lakhs per acre, when president Mehrwan told the Viva team, "convincing the working committee will be my responsibility,” relates Khodadad.
The six trustees were further disappointed with Mehrwan for continuing to promote the cause of Tata Institute of Social Sciences (TISS) directly or indirectly after having presided over the working committee meeting of December 14 when it was decided to decline the TISS request for a free gift of 300 acres to expand their educational activities. "By donating land to TISS how many Zarathushtis will benefit?” ask the trustees. Even if eight percent of the seats are reserved for the community, who will pay the course fees? they wonder. Mehrwan’s contention that the value of the land will appreciate once an educational hub is created there and the railway line is extended up to Dahanu from mid-April is countered by Pervez who insists, "As the value of the land goes up, the risk of encroachment will be directly proportional.” Currently they have no money to fence their property against intruders. Building a nine kilometer wall around the periphery is estimated to cost around eight crore rupees.
Another enterprise with community connections that had evinced interest in the land was Godrej Properties but their offer of a joint venture with IZA had been declined on the basis of legal advice from their solicitor Harish Shah that "a trust cannot engage in business activities.” Besides, neither the TISS offer nor the one from Godrej Properties had any specific reference to financial consideration or implications, point out the trustees.
The trustees refer to the notice received by the Charity Commissioner on March 12, 2013, a "kind of caveat” which prohibits sale or any alienation of the IZA property. Further delays will make matters worse for the IZA, the trustees insist. To allay the opposition fears that Viva will renege on its payments, the trustees state that Viva has to pay up 15 percent or Rs 108 crores at the time of signing the Memorandum of Understanding. Once the Charity Commissioner’s sanction is received they are expected to pay the balance 70 percent within a month, and once the deal is finalized, pay the remaining 15 percent. Until then IZA continues its hold of the land and gets income from the sale of grass. "The question of Viva grabbing land does not arise.”
With the Bombay Parsi Punchayet advising them not to sell the land during a meeting between the two trusts, and other anjumans like Poona, Dahanu and Solapur sending them letters offering unsolicited advice, the trustees want to reiterate that they will not bow to external pressure and are capable of handling their affairs.
Opposition’s contention
(From left top row) IZA founder members and office bearers Pestonji Marker, Pestonjee Eranee, Khodadad Nasrabadi, Khodadad Kermani, Behmard Yezdani
(From left 2nd row) Dinshaw Irani, Burjor Aga, Dr (Maj) Aderbad Irani, Noshirwan Irani, Soli Mubarakai

"Why did I take a U-turn?” Mehrwan proceeds to answer the question posed by the trustees: "Initially I didn’t know about Viva Homes. When I came to know their connection with Bhai Thakur, I took a U-turn for the betterment of the community. I have not gone against the interests of IZA…” He futher believes "it is our social obligation to select responsibly a developer of repute as hundreds of Parsi/Irani Zoroastrian families own lands and reside in this belt.” Were the Tatas to come in they will "not only retain a Zarathushti footprint on our land by retaining the Trust’s name but they will also work towards the upliftment of society while financially profiting the IZA,” Mehrwan is sanguine.
"They put pressure on me to resign when I said ‘I won’t sign.’ I told them, ‘You throw me out.’ They could not throw me out of trusteeship.” Out of a total 36 members who attended the special general committee meeting on April 3, 25 members were in favor of removing Mehrwan as president, 10 were against and one vote was invalid. Regarding his continuing as trustee, 22 were against and 13 in favor. Since they failed to get a 3/4th majority, Mehrwan could not be removed as trustee.
"Nowhere in the IZA rules or memorandum is there any provision for removal of president or vice president. It implies they enjoy an immunity,” states Benafsha who had been co-opted on the IZA general committee for the five-year term 2004-2009. As per the IZA rules women cannot be elected, they can only be co-opted on the general committee. "Among the Iranis, women are to be seen, not to be heard,” she adds whilst declaring that as a qualified lawyer she has a mind of her own. Being familiar with the working of IZA, her kaka (paternal uncle) Sheriar Ahrestani being a founder member and her father Jamshed Ahrestani having also devoted several years to its progress, she explains at length how she was persuaded by Khodadad to withdraw her application for patron membership with an accompanying cheque of one lakh rupees which would have entitled her to sit in at all committee meetings on his verbal assurance that he would not permit the Palghar land to be sold. Why did they not hire solicitors Mulla and Mulla to vet tenders as they had originally planned? It would have then been the duty of legal retainers to ascertain the credentials of the bidders, she states.
The trustees think the IZA "is their ship which can move on their orders,” she observes. There is a coterie of 11 working committee members who attend their monthly meetings on the first Wednesday for which no notice of the agenda is issued in advance. Disputing the trustees’ claim to respect the "oath of secrecy,” Benafsha maintains, "A trustee has been elected by a voter and is accountable to him/her.”
"People who don’t agree have to keep their mouth shut,” says current committee member Ardeshir Irani referring to his efforts to compile a data base of IZA members and Iranis in Bombay which instead of being appreciated by the trustees, annoyed them. "They dissuade new members from joining… They don’t like to extend financial help to needy Iranis.”
For identity and posterity
The settlor of the land, Jamshed Khodaram Irani, had reportedly suffered great hardships and engaged the services of Mohammad Ali Jinnah who was then a budding lawyer to fight his case in the Privy Court to recognize his title deeds. Once he won the case, keeping aside 200 acres for his family, he bequeathed the remaining 2,334 acres and two gunthas to the Anjuman.
The income from the land was to be used for "any of the charitable and religious institutions or schemes of the IZA, e.g. in starting and maintaining orphanages or schools for Persian Zoroastrian boys and girls in Persia or India or in carrying on the medical, industrial and religious institutions carried on or proposed to be carried on by the said IZA in such manners as the trustees may in their absolute discretion deem proper,” noted the deed of settlement which further stipulated, "It is hereby agreed and declared that if and when the trust premises are sold it shall be lawful for the trustees to hand over the net sale proceeds of the trust premises to the Parsi Punchayet of Bombay with directions to pay the income thereof to the trustees for being utilized by them in manner and for the purposes hereinbefore stated… and to invest the proceeds in the purchase of any immovable properties in Bombay or in mortgage of immovable properties in Bombay or in any other security authorized by the Indian Trust Act…”
In 1958 the government had prevailed on them to donate 500 acres to the Bhoodan movement. They had to yield another 556 acres when the Agricultural Land Holdings Act and Land to the Tillers Act compelled them to opt for a tripartite settlement in 1974, surrendering 448 acres of land to the government and 108 acres to the husband-wife Bhiladwalla duo who were their tenants. The new minister though disputed this settlement and insisted they surrender their entire holding. The matter was fought in the Bombay High Court where it was held that the tripartite settlement should be honored by the government. It was taken to the Supreme Court too where once again the IZA’s rights to the land were upheld.
Currently there is no fear of the land being lost, insist the detractors who have studied the ONGC budget allocation where there is no allowance for land acquisition. Hence there is no urgency as claimed by the IZA trustees who want to take up the matter at their next general committee meeting in May and preempt Tata Housing and TISS to come forward with a proposal for which they sought a minimum two months’ time for "a preliminary due diligence study of the land and financial modalities.” In his letter of March 14, 2013, Prof S. Parasuraman, TISS director states that TISS and Tata Housing "wish to explore the possibility of holistic development of the large chunk of 963 acres…for a variety of purposes: To establish a National Vocational University (to be named after Ratan Tata with his consent)…Iranian Zoroastrian Anjuman Campus of TISS (to) offer professional courses in inter and trans-disciplinary areas of health, education, management, habitat planning, rural development, etc…”
The opponents have also ascertained that Viva Homes’ has a net worth of only Rs 1,81,52,351 as per Form 23A filed by them for the year April 2011-March 2012.
Former committee member Cyrus Irani has another query for the trustees: Considering that the first schedule of the settlor’s deed refers to 2,334 acres and knowing that 1056 acres were surrendered earlier, it should leave the trustees with 1,278 acres. "Why are they selling only 963 acres? Why not the 108 acres too that was first given to their tenant?” Where is the unaccounted 315 acres?
To lend support to their cause to save the land "for identity and posterity” an online petition was initiated in March by "The awakening” urging community members to be "more proactive” in the matter. Asking members to come forward "not in a negative or derogatory manner but positively with suggestions and contributions,” they hope to prevail on the trustees to explore other proposals.
Even if IZA does not manage to sell its land but can put it to good use by donating for an educational institution or a medical center in keeping with the settlor’s wishes, the trustees would have done their duty, believe Mehrwan’s supporters. If the trustees were to earn a sizable chunk of monthly income they could undoubtedly offer higher doles and aid. "But do they want to make beggars of the community? A community that has come up through hard work and industry?” asks Benafsha who says that her energies are now exhausted after fighting for 20 years for the Tithal land that was saved for the community.
At age 63, she would not now go to court, but she would rather see the matter stemmed in the bud. The youngsters though are determined: "We will take the matter to court; go up to the Supreme Court if necessary” to stall the sale. "At the next election due in 2014 we will bring in the youth. We want to safeguard our future.”
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