Defence Estate Directorate Raises Alarm on Illegal Sales of Properties on Defence Land in Pune and Khadki Cantonment Areas

Sumit Singh

Pune, 15th December 2023: The Directorate of Defence Estates, Southern Command (SC), has taken a bold step by addressing a letter to the Inspector General of Registration (IGR), urging a halt to the registration of defence properties, particularly bungalows in Pune and Khadki Cantonment areas. The move comes in response to serious concerns regarding ongoing and past illegal sales, violating central government rules.

Defence Estate officials, led by Director Saurav Ray, have initiated this action. Notably, Ray was a key figure in exposing the infamous Adarsh scam, having himself faced challenges resisting the transfer of valuable defence land in Ahmednagar Cantt in 1997.

Pune Cantonment, home to approximately 300 bungalows, schools, and clubs such as Turf Club and New Poona Club, leased out by the Ministry of Defence (MoD), is at the center of attention. These leases typically extend for 30 years, with the possibility of extension up to 90 years, contingent on adherence to lease conditions.

The letter, dated December 6 and addressed to Hiralal Sonawane, IGR, Maharashtra, highlights the Directorate’s observation of unauthorized transfers and sales of bungalows and house properties on Defence Land. It emphasizes that such transactions cannot occur without the approval of the competent authority (Government of India). The letter urges IGR to instruct registrars and sub-registrars to refrain from registering any sale of lease and old grant properties on defence land within cantonment areas.

In addition to addressing the IGR, the Directorate instructs the Defence Estates Officer (DEO), Pune circle, and Pune Cantonment to communicate with registrars and sub-registrars. A public notice is also recommended to sensitize the general public against engaging in unauthorized property sales within the cantonment area.

Cantonment experts reveal that leaseholders of old grant bungalows were originally prohibited from making additions, alterations, and conversions. However, these properties have undergone transformations into commercial establishments, hotels, shopping malls, and other revenue-generating enterprises. Many have changed hands and are now owned by influential political, corporate, and business personalities, not only in Pune but across the country.

The roots of these leases extend back to the British era, constituting 90% of the agreements. The leases, often acquired for nominal double-digit or a few hundred rupees, were initially granted to British Missionary organizations, Parsi businessmen, and private individuals associated with the Britishers.

The Controller General of Defence Accounts (CGDA) conducted a systems study in 2010, revealing a deep nexus between DGDE officials and encroachers, resulting in the systematic looting of government land. The Public Accounts Committee, Lok Sabha, in its report of Nov 4, 2013, highlighted illegalities, irregularities, and lacunae in the management of defence land. It emphasized the need to address unauthorized constructions and activities on Old Grant Bungalow Sites (OGBS) and raised concerns about apparent collusion between vested interests and authorities.

Cantonment activists assert that the resale value of old bungalows and the profit involved in their transactions create a nexus involving owners, builders, Cantt board members, officials, brokers, and Defence Estates department officials. They call for strong measures to reclaim these national assets for productive use by the armed forces and national development.

A writ petition filed by the Common Cause NGO before the Supreme Court links the mismanagement of defence lands to irregularities, illegalities, and corruption. It points out that nearly 25% of all defence lands have not been ‘mutated’ or transferred to the Defence Estates Department, leading to encroachments and loss to the public exchequer.

Various audit reports by the CAG have specifically highlighted misuse, sale, and illegal appropriation of revenue received from defence land by Defence Estate officers in collusion with land sharks and private parties.

The historical context also reveals the involvement of former army commanders and Defence Estate officers in the Adarsh Scam, wherein a CBI investigation in 2012 implicated individuals for an out-of-court settlement favoring a private builder for Rs 46 crores. The central agency alleged undue favoritism in acquiring a property measuring 0.96 acres in defence land in Pune cantonment. The current measures by the Defence Estate Directorate aim to rectify such issues and safeguard national assets for the benefit of the armed forces and overall development.