Rayomand Coins
 

A trust in deficit

Observers of Parsi politics had predicted a split outcome. Candidates from both the rival camps were expected to win some seats, with independent candidate Anahita Desai securing the largest number of votes at the recently concluded Bombay Parsi Punchayet (BPP) trusteeship elections. The surprise was sitting trustee Kersi Randeria losing his seat and the rival, populist Dinshaw-Viraf Mehta camp securing a comfortable majority of four on the seven-member board. As Dinshaw told Parsiana prior to the ceremonial boardroom meet on May 31, 2022, "We did much better than expected."

After all it was the Mehta led majority of three on the then five-member board that had used one excuse after another to thrice postpone the elections. Even a two-to-two tie vote to hold the elections was scuttled with the chairwoman, Armaity Tirandaz, using her casting vote to negate the move. It was only after Randeria and then sitting trustee Noshir Dadrawala moved the Bombay High Court that Justices Shahrukh Kathawalla and Milind Jadhav set a date and a code of conduct was introduced to the BPP election scheme.

But to hear the Mehta camp tell it on the election trail, the postponements were for genuine reasons keeping the community’s interest in mind, and not as alleged to hold on to their majority; the code of conduct was introduced at their insistence, and so on. They justified their populist decisions such as scrapping the Rs 750 (USD 9.67) service charge or converting leave and license agreements into tenancies, as being in the interests of baug residents. A proposal was also mooted to "reduce or remove" the 10% annual increase in parking charges.

The Randeria camp, of which four out of the five candidates had not served on the BPP board, spoke about their background, their contribution to causes and their plans for the trust, leaving only Randeria to counter the claims of the Mehta camp. But his rhetoric and style of delivery was no match for his more glib, smooth talking rivals. Plus, Randeria can be abrasive at times. As the former US President Theodore Roosevelt once commented, "People don’t care how much you know until they know how much you care." Randeria’s style of delivery did not effectively convey his caring to a lay audience. Most Parsis take a cursory interest in community matters and with seven candidates to choose from a slate of 15, many were at a loss as whom to vote for. They only knew the board was divided and decided to give one side the opportunity to show results.

While the new board may, as promised, hold periodic meetings with the community and increase communication, they will find it difficult to reverse the financial deficit and loss of image of the 349-year-old trust. To make matters worse all the free sops promised by the populist Mehta camp will only make a precarious situation worse.

Viraf told voters that the BPP has an annual deficit of Rs 10 crores (USD 1,288,884). The salaries alone account for 14.4 crore rupees of the total annual expenditure of Rs 24 crores or around 60%. Income is limited to two main sources, rent (Rs 6.5 crores) (USD 837,979) and interest from deposits (some of them refundable) (seven crore rupees) (USD 902,998).

With an approximate eight percent rate of inflation, that deficit figure will increase in the coming five years. Viraf also mentioned that auctioning of flats was attracting fewer buyers and blamed the lack of interest on Randeria for publishing notices saying he was opposed to the auctions. But whether the disinterest is due to the cautionary notice or a declining demand as community numbers continue to diminish perceptibly is debatable. One avenue left for raising funds is the sale of flats in the much delayed Godrej Baug ownership building. But whether there will be sufficient buyers at the price asked is uncertain.

Dinshaw even spoke of redeveloping Nowroz Baug, a project earlier backed by Nusli Wadia. Dinshaw says he opposed that proposal as it entailed offering some land to non-Parsi developers to finance the development. Can the majority trustees now raise that money from potential, Parsi flat purchasers? It’s unlikely. An ownership building is also being considered on the Thana Doongerwadi lands by the local trust there. Will there be takers for these new projects? No market survey has been done to gauge the demand for new, ownership construction. Instead in colony after colony one hears of flats remaining locked and unused.

Another resource for funds is to tap the Rs 100 or more crores with the BPP marked for maintenance of the five Wadia baugs. Dinshaw has no love for the Wadia family scion, Nusli, who heads the Wadia Committee of Management. The Mehta camp alleges the funds can be used for purposes other than just the Wadia baugs. But with the BPP’s coffers empty, are the four majority trustees in a position to take on the well-heeled and feisty Wadia? In the past Wadia has "loaned" money to the BPP but appears less inclined to continue to do so, especially after the three majority trustees scrapped the Rs 750 service charge levied on residents of the non-Wadia baugs, an estimated loss of two crore rupees per annum. The Wadia baug residents continue to pay the service charge. While Wadia agreed to "loan" three crore rupees last year, he has reportedly turned down a subsequent request.

The possibility of raising donations appears slim. As community numbers decline, so also do the surplus funds for disposal. The donors will therefore dispense their largesse circumspectly. The BPP’s dubious image acquired over the past 25 years as a quarrelsome, meddlesome, litigious body would cause donors to accord it a low priority. Also, donors are inclined to donate for specific projects. Few want to contribute toward running expenses.

The new board has their work cut out for them. Will they be able to curtail expenses, initiate reforms, be more inclusive and innovative? Or will they continue to break their dwindling fixed deposits as they have done in the past to meet expenses? Other anjumans and associations in India and abroad manage to not only balance their books but also undertake new projects. Will the new BPP trustees be able to do the same?

 

 



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I do not live in India, so I not sure of the laws that would apply, but co-operatives face a similar situation elsewhere. The solution is to charge rent proportional to income shown on their tax returns. This would also be fair to poor Parsis who actually deserve housing, and are supported by their well-heeled brethren.
- Rohinton Unwalla
- 08-Jun-2022

I do not live in India, so I not sure of the laws that would apply, but co-operatives face a similar situation elsewhere. The solution is to charge rent proportional to income shown on their tax returns. This would also be fair to poor Parsis who actually deserve housing, and are supported by their well-heeled brethren.
- Rohinton Unwalla
- 08-Jun-2022

what a sad state of affairs!!
- Sunnu Golwalla
- 07-Jun-2022

 

Villoo Poonawalla