Defence properties in Pune, Khadki cantonments to cater to MoD needs

It is to be noted that Pune cantonment has about 300 Bungalows leased out by Ministry of Defence ( MoD )

After a series of reports by Hindustan Times regarding the fraudulent sale of multi-crore Old Grant Bungalow (OGB) properties in Pune involving builders and highly influential persons, the Defence Estates Office, Pune circle on Wednesday stated that it has initiated sixteen resumption proposals of defence properties in Pune and Khadki cantonment board areas.

Defence Estates Officer Rajendra Jagtap in a release stated, “In DEO Pune Circle, 16 resumption proposals have already been initiated.”

However, Jagtap did not specify the location and details of the current owners of the said properties. The Defence Estate Office (DEO) issued a press release after more than 45 cases of unauthorised sale of OGBs belonging to the central government were referred to the IGR office by former Defence Estates Director Saurav Ray. Jagtap said the resumption process had been initiated.

“The proposals are at different stages from the Pune and Khadki cantonment boards. Resumption is not just a violation; it is the need of the ministry of defence (MOD) for specific purposes. Each property has a separate board of officers,” he said.

According to Jagtap, the government has the right to resume the OGBs, if there is a requirement for the army or there are serious violations of terms of grant.

“The discretion solely lies with the government, based on the merits of each case. The value of superstructure, in the sale, is determined by the registrar, as per their norms. It, however, has no bearing, when Old Grant is resumed as the government gives compensation, based only on the construction cost of the structure, assessed by MES, the Army Engineering Deptt. So even if in a sale transaction, value is very high, in resumption which means taking back by the government valuation is quite less (at times meagre) and is no burden on the government, he added.

He further said valuation in sale or agreement to sale transactions, which is assessed by the registrar’s office of state government is only of superstructure, not of land.

The DEO office has not come across any case of sale transaction of land so far.

The Registrar’s office has been reminded and is aware. High-value sale deed has no impact when it is resumed, as compensation is assessed not on sale value, but the cost of superstructure assessed by MES, which is quite less.

However, former defence estates director Ray had raised serious question marks over unauthorized OGB construction wherein entire OGB structures were pulled down with no trace of the old remnants.

He had pointed out that the DEO office had not carried out the mandatory inspections since 2005, which led to large-scale unauthorised sale and construction of OBGs and led to the brazen sale of defence properties.

The DEO reiterated that OGB land was always of the central government and only superstructure (Building) can be transferred subject to the following conditions of GGO 179 of 1836. Mutation of transfer of superstructure and occupancy rights by inheritance and will (without complications) can be approved by the DEO concerned whereas the same by sale needs approval of the central government.

Transfers by sale without prior approval of the government is tantamount to a violation of old grant terms which may be condoned by the government on the merits of each case as has been done in the past.

Transfer, by any means, is not alienation of land and there is no bar to transfer. There have been cases where prior or ex-post-facto permissions have been given by the competent authority.

Ray had red-flagged the OBG sale issue to IGR Maharashtra Hiralal Sonawane on Dec 6 where he stated,

“It has been noticed with serious concern that in many cases, bungalows, house properties on defence land (Class B-3 lease and old grant sites) have been transferred and sold unauthorizedly by lessees/occupiers of old grant bungalows to individuals/private individuals and builders without approval of competent authority, government of India.”

It is for your kind information that lease and old grant properties cannot be sold/transferred without approval of government authority.”

It is to be noted that Pune cantonment has about 300 Bungalows, a few Schools and Clubs like Turf Club, New Poona Club etc, both leased out by Ministry of Defence ( MoD ) to private persons or clubs or educational institutes mainly for 30 years extendable upto 90 years if lease conditions are followed.

Similarly Khadki cantonment Board (KCB) has sixty old grant bungalows under its jurisdiction.

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