Leasehold Rights Cannot Confer Absolute Title: Calcutta High Court Mandates Freehold Conversion for KMDA Property

Court orders KMDA to execute a lease deed followed by conversion to freehold under the West Bengal Land Conversion Scheme, 2023, in favor of Roopkatha Bhattacharya. In a landmark judgment delivered on May 14, 2024, the Calcutta High Court ruled in favor of petitioner Roopkatha Bhattacharya, directing the Kolkata Metropolitan Development Authority (KMDA) to convert her leasehold property to freehold. Justice Rai Chattopadhyay emphasized that KMDA, possessing only leasehold rights, could not transfer absolute title, thereby mandating compliance with the West Bengal Land Conversion (Leasehold land to Freehold) Scheme, 2023.

The case centered on Roopkatha Bhattacharya’s claim against KMDA for its failure to execute a sale deed for property purchased by her mother in 2001. Despite full payment and possession in 2003, KMDA only proposed a lease deed in 2018, prompting Bhattacharya to seek judicial intervention to enforce the original sale terms or secure equivalent freehold rights.

Justice Chattopadhyay noted the petitioner’s grievance but highlighted KMDA’s legal limitations. “The KMDA, having only leasehold rights over the property conferred by the government, cannot transfer absolute title,” the judgment stated, affirming that the initial brochure promising a sale deed was legally untenable.

The court stressed the principle of caveat emptor, noting that the petitioner’s reliance on the brochure did not absolve her of the responsibility to understand KMDA’s property rights. “The purchaser must be aware of the rights of the transferor,” the court emphasized, clarifying that KMDA’s offer of a sale was beyond its legal authority.

The court deemed the application of the West Bengal Land Conversion Scheme, 2023, appropriate. Justice Chattopadhyay directed KMDA to execute the lease deed promptly and facilitate the conversion to freehold, ensuring no additional charges to the petitioner. This decision aligns with a similar Supreme Court precedent in Malay Kumar Mandal vs. Sanghamitra Mandal & Anr.

The court ordered that the stamp duty for the lease deed be calculated based on rates at the time of the initial possession transfer in 2003, thereby alleviating the petitioner’s financial burden due to KMDA’s delay.

Justice Chattopadhyay remarked, “The transferor cannot confer rights beyond its legal capacity. The KMDA, possessing only leasehold rights, can validly execute a lease deed, which can then be converted to freehold under the 2023 Scheme.”

This judgment not only resolves the long-standing dispute between Roopkatha Bhattacharya and KMDA but also sets a crucial precedent for similar cases involving leasehold properties under government ownership. By applying the West Bengal Land Conversion Scheme, 2023, the court has provided a clear legal pathway for converting leasehold rights to freehold, reinforcing the legal framework for property transactions in West Bengal.

Date of Decision: May 14, 2024