Breach Candy Hospital won't have to pay Rs12 crore lease

In a relief to Breach Candy Hospital Trust, the Bombay high court has set aside the order of the City Collector asking the hospital to pay hiked lease of Rs 12.2 crore for increasing the height of their south Mumbai building from 70 ft to 104 ft.

In a relief to Breach Candy Hospital Trust, the Bombay high court has set aside the order of the City Collector asking the hospital to pay hiked lease of Rs 12.2 crore for increasing the height of their south Mumbai building from 70 ft to 104 ft.

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A division bench of justice DK Deshmukh and justice ND Deshpande on Wednesday set aside the collector’s order while hearing an appeal filed by the hospital trust.

On January 18, 1990, the collector had asked the hospital trust to pay additional rent of Rs 60,11,700 per annum from January 1, 1984, though construction started in January 1996.

In December 1938, then governor had leased the plot in Breach Candy to Mercantile Bank of India for 99 years. To construct additional diagnostic facility, the trust sought permission from the collector in April 1982, seeking sanction to increase the height to 104 ft. The collector opined that the hospital had indirectly benefited to the extent of 6011.70 sq m and so the lease should be charged at 8% of then market value.