A H Wadia Trust sells 5.5-acre land parcel to hotel group for Rs 71 crore in Mumbai, ET RealEstate

June 24, 2023

<p>Representative Image</p>
Representative Image

MUMBAI: The A H Wadia Trust, one of Mumbai’s largest private landowners, has sold its 5.5-acre land parcel in Kole Kalyan, Andheri Taluka, for Rs 71 crore. The buyer is Global Eco Hotels, which is involved in hotels, camping sites and short-stay accommodations.

According to CRE Matrix, a real estate data analytics firm, the transaction was registered on February 3, 2023, and a stamp duty of Rs 10.70 crore was paid by the buyer.

The public charitable trust is known to generously disburse money for poverty alleviation, medical aid to the under-privileged and educational funds to students across communities but is restricted to people in Maharashtra and Gujarat. It also donates funds to the Parsi General Hospital at Breach Candy in south Mumbai.

Like many Parsi-controlled trusts, its vast real estate in Mumbai is heavily encroached on by slums and illegal structures. In 2015, a Slum Rehabilitation Authority (SRA) survey showed the A H Wadia Trust owned 361 acres in Kurla.

One of the trustees had told TOI that the trust could not speculate on its land holdings unless an audit is taken. “A lot of our land was acquired by the government decades ago, but it was returned to us completely encroached,” he had said.

In the past, many builders had approached the trust, offering to rehabilitate slum dwellers and redevelop the land.

In the early 20th century, the Cama family of Mumbai Samachar, which once managed the trust, owned 1/3rd of the land in Chembur.

The trust is named after Ardeshir Hormusji Wadia, a 19th-century Parsi philanthropist.

In the early part of the 19th century, he was given the lease for Kurla, which comprised the six villages of Mohili, Kole Kalyan, Marol, Sahar, Asalphe and Parjapur, for a yearly rent of Rs 3,587. Most of the trust’s Kurla land is now completely encroached. He died on May 16, 1882. He bequeathed his large estate for charity purposes and directed the trustees to sell the land through auction or private contracts.

A few years ago, the trust had moved a contempt petition in the Bombay high court against the BMC for failing to demolish an illegal structure on its land in Kurla.

Interestingly, the trust had first invited bids for this 5.5-acre parcel way back in 2010 and Global Eco Hotels won the bid then by offering Rs 51 crore. However, for various reasons, the transaction could be concluded only recently, and the buyer had to pay an additional Rs 20 crore after the charity commissioner directed it to clear the past dues of the trust.

  • Published On Feb 18, 2023 at 09:08 AM IST

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