Is Congress Being A Bad Tenant?

Amid the news of the Narendra Modi-led central government's plan to evict the Indian National Congress from its headquarters at 24, Akbar Road, the party has claimed that it has permission until October 2018 to stay at the premises. However, there have also been counter claims that the grand old party has, in fact, only sought an extension of its lease and the matter is still under consideration of Urban Development Minister M Venkaiah Naidu.

What is the whole controversy? Can the Congress party actually be evicted from the prime property at Akbar Road and other areas of Delhi's posh Lutyen's Bungalow Zone (LBZ)? Let's explore the issue in detail.

The persistent tenant

The Congress party's lease for four pieces of the super-expensive real estate in LBZ ended in 2013. The Directorate of Estates sent a notice to the party to vacate these properties in January 2015. In 2010, the Congress had got land allotted to build a new office at 9-A Rouse Avenue. But, like a normal builder, the party is still awaiting building approval for constructing its new office. Despite the notice, the party continues to occupy the prime properties.

Meanwhile, the government has been planning to ask the Congress to pay rent at the market rate on these highly subsidised properties for the period of its overstay – since June 2013.

The price differential

The two properties at Akbar Road — plot numbers 24 and 26 — are Type-VIII bungalows and their estimated monthly rent by current market trends should be over Rs 2 lakh apiece. At present, the Congress party is reported to be paying Rs 77,000 per month for each – that is, Rs 1.23 lakh less for each property. If the party were to pay at the market rate for the time since June 2013, the arrears as of October 2016 would come to Rs 49.2 lakh (40 months multiplied by a shortfall of Rs 1.23 lakh) for the two Akbar Road properties alone.

The other two properties — 5, Raisina Road, and C-II/109, Chanakyapuri — are Type-VI bungalows and their monthly market rent is estimated at about Rs 70,000. The Congress has been paying a monthly rent of Rs 26,000 for these properties – that is, Rs 44,000 less. Going by the same calculation method, the party would have to pay an arrear of Rs 17.6 lakh (40 months multiplied by Rs 44,000). To put things into perspective, the total arrear of Rs 67.6 lakh is enough for the common man to buy a plush 3-BHK apartment in Noida and some other places in the National Capital Region.