Poonawala breaks silence after 8 years over ₹750 crore Lincoln House Realty Dispute

New Delhi (India), 4th April 2023: The 81-year-old chairman and managing director of the Poonawalla group, Dr. Cyrus Poonawalla, has questioned the justification given by the Indian government for refusing to approve his acquisition of Mumbai’s opulent Lincoln House.

Over the years, the Lincoln House has undergone several ownership changes and even housed the US embassy in the city for many years. On April 2, Poonawalla discussed the standoff with Bloomberg and referred to it as a “political and socialist decision.”

It is a two-acre Grade III building with a built-up area of roughly 50,000 square feet in Breach Candy, one of Mumbai’s most prestigious neighbourhoods. In order of diminishing national significance and level of protection, the government assigns Grade I, Grade II, and Grade III designations to historical properties.

The term “building and precincts of importance for townscape; that evoke architectural, aesthetic, or sociological interest” is used to describe Grade III structures. These categories also dictate how such structures can currently be changed. The majority of Grade III structures can be redeveloped.

The Lincoln House,, formerly known as Wankaner House was constructed in 1933 by Maharana Amarsinh Jhala, the last monarch of Wankaner (located in modern-day Gujarat), and served as his home in former Bombay.

In order to settle his taxes following freedom following the accession of the princely states, the Maharaja transferred the 999-year lease rights to the American government in 1957. The House was renamed the Lincoln House after the US government established a consulate there.

The US consulate in Mumbai relocated in 2011 from Lincoln House to the Bandra Kurla Complex. The US government made the decision to sell Lincoln House for Rs. 850 crore.

The US government and the Poonawallas entered into a real estate agreement in 2015 after the land was sold for Rs. 750 crore. It was reportedly the biggest real estate transaction in the nation’s financial centre at the moment. It was intended to serve as the Poonawallas’ home.

However, it is still in a bind because the Indian government, in spite of repeated requests from US authorities, won’t approve it. The Poonawallas, who, according to the contract, can opt out of the agreement, will be the Americans’ only remaining buyer if there is no progress by the end of this month.

Poonawala commented on the matter and said, “Four years on any deal is unheard of. You can’t wait four years to clear anywhere on the planet. How can this be ease of doing business in India if it takes four years to transfer one lease?” He further added, “I’d have never touched the property if I feared it will get into a trouble. The lease is for 999 years and began in 1957. We have 900 more years.”

Poonawala called the situation, nothing less than “bureaucratic harassment”.