Bombay High Court Upholds Lease Rent Hikes in Bandra

The Bombay High Court supported Maharashtra government's decision to increase lease rents in Bandra using Ready Reckoner rates, ruling it wasn't arbitrary. The court emphasized rent stability for lease terms and dismissed petitions challenging the hikes. It noted societies had enjoyed prime land affordably for decades. Rent revisions must remain fair.

The Bombay High Court has upheld the Maharashtra government’s decision to increase the lease rent in Mumbai’s Bandra, based on Ready Reckoner (RR) rates, asserting that it is not “arbitrary” as the suburb is a high-end real estate area.

A division bench of Justices B P Colabawalla and Somasekhar Sunderesan ruled that the rent must remain unchanged for the entire tenure of the lease agreement, contrasting the government’s directive to revise it every five years.

The court resolved multiple petitions by Bandra housing societies, challenging government resolutions revising long-term lease rents. It highlighted that these societies have had prime land privileges at minimal costs for years, and that the increased rates aren’t exorbitant given the context.