The National Company Law Appellate Tribunal (NCLAT) has ruled that 10,444 sub-leases given by Tata Steel in Jamshedpur are illegal since they were not registered. The sub-leases, which date back to the British era, were granted by the government under the Government Grants Act, 1895. The ruling invalidates all subsequent transfers of land without proper registration, affecting thousands of transactions in Jamshedpur. The NCLAT decision contradicts Tata Steel’s claim that no registration was required, as the sub-grants were part of the original government grant.
The advocate for Rahat Hussain, one of the parties affected by the ruling, argues that the sale deed of one property declared illegal would affect the legitimacy of all similar transactions. The ruling has raised concerns about the validity of the sub-leases, and the governments of Bihar and Jharkhand, which classify government grants as leases, are under scrutiny. The matter is expected to escalate further, and the advocate has indicated that the legal battle will likely proceed to the Supreme Court or the Jharkhand High Court. The ruling has left the residents of Jamshedpur anxious about the future and the outcome of this complex legal challenge.