Parsi Sanatorium Sale Dispute: Donor Family Opposes ₹5 Crore Builder Deal, Claims Breach of 1997 Charitable Deed

A legal and ethical controversy has erupted in Mumbai over the proposed sale of a historically significant Parsi community property in Sanjan, Gujarat. The Davierwalla family, which originally donated the 2.5-acre sanatorium estate at a concessional rate, has raised strong objections against the World Zoroastrian Organisation Trust Funds' (WZOTF) plan to sell the property to a private builder, claiming the transaction violates the original deed's charitable covenants.

Historical Context of the Charitable Property Transfer

The controversy centers around a property transaction that took place in 1997, when the Davierwalla family sold their ancestral Sanjan bungalow estate to the WZOTF for merely ₹65 lakh—substantially below the prevailing market rates. The family had agreed to the below-market sale on the understanding that the property, located strategically near Sanjan railway station, would serve exclusively for Parsi-Irani Zoroastrian community welfare.

The estate, which includes a bungalow, stables, outhouses, and surrounding land, was subsequently converted into the Bai Maneckbai P B Jeejeebhoy Sanatorium. According to the original transfer deed, the property's usage was strictly limited to senior citizens' care, orphanage facilities, housing for widows, and other welfare initiatives exclusively for the Parsi-Irani Zoroastrian community.

The Davierwalla family has emphasized that selling the property for commercial purposes or redevelopment would constitute a fundamental breach of the original transfer terms and undermine the sanctity of a property intended to serve marginalized community members. This dispute highlights the broader challenges of vetting builders in India and protecting charitable property interests.

Financial Sustainability Concerns Cited by Trust

The WZOTF has defended its decision to sell the property by citing severe financial losses and underutilization issues. According to the trust, between 2020 and 2025, the sanatorium generated only ₹16 lakh in revenue while incurring expenditures exceeding ₹63 lakh, creating an unsustainable operational burden.

WZOTF chairman Dinshaw Tamboly has indicated that proceeds from the property sale would be redirected toward other community welfare initiatives. These include financial support for underprivileged community members, medical aid and nutrition programs, and educational and entrepreneurial initiatives. The trust maintains that this approach would serve the community more effectively than maintaining an underutilized facility.

Community Opposition and Alternative Solutions

The proposed sale has triggered significant opposition from within the Parsi-Irani community. Three community members have filed a caveat with the charity commissioner to prevent hasty approval of the transaction. Additionally, the World Alliance of Parsi Irani Zoroastrians (WAPIZ) has offered to purchase the property for ₹5 crore to ensure it remains within community ownership.

WAPIZ members have raised concerns about transparency in the sale process, noting that the property's ready reckoner value is approximately ₹3 crore, yet the WZOTF did not establish a reserve price when inviting bids. This has raised questions about whether the transaction would achieve fair market value for the community asset.

The Davierwalla family has categorically denied giving any consent or approval for the sale, asserting that the transaction fundamentally undermines the original intention of charitable use and violates the trust established in 1997. Similar controversies involving community properties and charitable trusts underscore the importance of understanding legal aspects of buying property in India.

Key Issues in the Property Dispute

Historical and Sentimental Significance

Beyond its functional purpose as a sanatorium, the property holds considerable historical value for the Davierwalla family and the broader community. The estate notably hosted former Prime Minister Morarji Desai during his tenure as Chief Minister of Bombay Province in the 1950s, adding to its sentimental importance.

This historical connection deepens the family's emotional attachment to the property and strengthens their argument that its sale for commercial redevelopment would represent a loss not merely of real estate but of cultural heritage. For those interested in preserving historical properties, understanding land tax obligations in India is essential for proper maintenance.

Broader Implications for Trust-Owned Properties

This case highlights complex tensions between heritage preservation, community welfare obligations, and financial sustainability in managing trust-owned real estate assets. As Mumbai's real estate market continues evolving, similar disputes involving charitable and community properties may become more common.

The final decision on the property's fate is expected to come under scrutiny from the Charity Commissioner, with legal, ethical, and cultural considerations likely to weigh heavily in the outcome. The case raises important questions about how to balance the financial realities of maintaining charitable properties with the donor intent and community expectations that motivated their original transfer.

Similar disputes have emerged in other Indian cities, where upcoming real estate projects in Mumbai and elsewhere have sometimes conflicted with heritage preservation and community interests.

Disclaimer: This news article is based on information available as of October 28, 2025. The details regarding the proposed sale of the Sanjan Sanatorium property represent ongoing legal and community discussions. Readers are advised to verify current developments independently. This article is for informational purposes only and does not constitute legal advice. Property transactions involving charitable trusts should always be reviewed by qualified legal professionals. The views expressed by various parties mentioned in this article are their own and do not necessarily reflect the position of this publication.