It is not often that elected officials admit to abject failure. But that is what the beleaguered seven trustees of the once venerable Bombay Parsi Punchayet (BPP) have confessed. Their reply to the complaint filed by their employees’ union, the Mumbai Mazdoor Sabha (see "BPP workers protest," Events and Personalities, Parsiana, June 21-July 6, 2023) is a litany of woes to explain their inability to pay their employees the dues stipulated in their agreement dated April 2022. No doubt many of the difficulties are inherited (four of the trustees started their first term in office in May 2022) but the affidavit filed on behalf of all seven by the hapless chief executive officer offers no solutions to the problems cited. These failings include an inability to offset falling revenues, honor financial commitments, maintain properties in good repair, manage labor and distribute benefits/subsidies.
Their sorry reply submitted to the Industrial Court on July 24, 2023, no doubt to win the Court’s sympathy, reflects the dire state of the asset-rich but financially bankrupt trust. Here are a few samples:
"I say and submit that the trust is facing a critical financial crisis due to factors totally beyond its control. The trust continues to incur huge operating losses thereby making its long-term continuity vulnerable and its short-term sustainability unviable…
"The Respondent No. 1 (the BPP) has not been any longer receiving substantial donations from its well-wishers and donors for the last several years as it used to so receive earlier. Being a charitable organization, the near drying up of this very critical source of funding has created a huge financial void in its income while its costs and expenditure…continue to be incurred…
"Many of the trust buildings now requiring critical repairs have to be kept in dilapidated conditions without repairs due to (the trust’s) financial crisis and shortfall thereby endangering lives of its residents…
"The immovable assets of the trust also have not been adequately insured due to its inability to pay the higher premium amounts of these insurance schemes."
The list of tribulations goes on and on. But while the trustees plead helplessness, they have undertaken to host, "under the(ir) auspices," the 9th World Zoroastrian Youth Congress in the city in 2027. How is it they can raise money for this venture yet default on every other payment?
The same trustees that occupy office today will be there in 2027, at least till May. Their five-year term will then end and new elections will, hopefully, be held for all seven seats. Already, one activist has questioned on his WhatsApp group chat whether the Congress "is a smart move to delay the BPP elections." The 2022 elections had been delayed by 18 months.
The BPP has around 4,200 flats under its control. Much of their meager revenue is derived from auctioning some of these charitable flats to the highest bidder on a leave and license basis. But even this income is shrinking. As the affidavit notes, "It has been found that the members of the community are no longer showing sufficient interest in seeking such residential accommodation." As the community numbers and incomes decline and Parsis age, there are few or no buyers for flats, especially those on the second and third floors of buildings without lifts.
The trustees state that 54% of the BPP’s flats are given on tenancy as versus leave and license or ownership. The trust, therefore, claims they "cannot charge rent to such tenants beyond the prescribed ‘statutory rent’ recoverable." But they fail to mention that under The Maharashtra Rent Control Act 1999 the landlord is entitled to increase rent annually by four percent. Statutory rent includes property and other taxes imposed by the government. Yet the trustees claim in their affidavit the rent is "subsidized by the trust as a consequence of which the rent actually paid by the beneficiaries only represents 38.34% of the government dues and levies that it ends up paying for these tenants."
One can understand subsidizing economically disadvantaged ten-ants but why should government levies be subsidized by the trust and donors especially for people who can afford to own vehicles, subscribe to WiFi and pay cable and satellite television charges? Why have the trustees not raised the rent annually as they are legally entitled to do? Why are leave and license fees not revised? Why are parking charges not enhanced? Why was the monthly Rs 750 service charge for BPP managed flats rescinded in July 2020? By withdrawing the levy the BPP lost around two crore rupees (USD 241,620) annually, amounting to a total of six crores rupees (USD 724,860) over the past three years. Another disastrous sop bandied about by some candidates before the May 2022 trusteeship elections was to freeze parking charges!
Contrast the fainthearted actions of the earlier BPP trustees with those of Malcolm Baug. The trustees there took the unpopular decision to raise license fees for residential housing by 200 to 300 percent! Residents who were financially strapped were given concessions.
Even "without paying the annual increment" agreed upon, wages consume 90% of the BPP income, leaving only 10% to cover all other expenditure and activities the affidavit states. The organization "was therefore unable to perform any of its other charitable and social duties or carry out any community programs being the very purpose of the existence of the trust."
The affidavit further alleges "non-performance, absenteeism and indiscipline of (the union’s) members. As a result of this, it becomes very necessary for the trust to further engage contract labor to be able to provide services to complete the jobs which the complainant union members were not performing with due diligence." What action, if any, was taken to discipline the workers? How many oral warnings have been given to the recalcitrant employees? How many letters of warning were issued? How many courts of inquiry were held? How many were suspended? How many were dismissed?
Managing a trust of the BPP’s size and dimensions is a tough task. It requires competent people. The present trustees have to decide if they are up to the task and, if so, get on and perform the job they were elected to do.