Pioneer News Service
BOKARO
A dispute over the applicability of lease conditions to membership and transfer of residential plots has emerged between SAIL-Bokaro Steel Plant (BSL) and the Bokaro Steel Employees Co-operative House Construction Society Ltd.
The issue follows the society’s request to amend Clause 12 of its December 4, 1970 lease agreement to include ex-employees in provisions relating to transfer of leasehold interests. In its August 14 response, BSL declined the proposed amendment, pointing to the existing terms of the lease.
According to the notice, around 90 acres were leased to the society for 60 years from November 8, 1968, with specific provisions governing use of the land, allotment of plots and transfer of leasehold interests. BSL has referred to Clauses 4 and 12 of the lease in this regard.
The matter also relates to a 2022 amendment to the society’s by-laws providing for membership of employees, ex-employees and retired employees of Bokaro Steel Ltd. BSL has questioned the applicability of the amended provisions to the lease, stating that prior written consent of the lessor had not been obtained.
BSL has pointed out that the society’s actions constitute a breach of the lease agreement terms and has issued the notice to ensure compliance with the conditions of the original lease agreement. It has asked the society to align its membership and plot-transfer provisions with the lease conditions within 30 days.
The company has also sought details of plots transferred so far and requested physical verification and audit of the leased area.
The notice states that failure to comply may lead to legal and contractual proceedings, including action relating to breach or termination of the lease and recovery of possession. The existing lease is scheduled to expire on November 8, 2028.
The proposed inclusion of ex-employees in plot-related provisions therefore remains the key point of difference, with BSL insisting that the society’s membership and transfer practices conform to the original lease agreement.
