Sir,
A PSU Bank is in our premises for past 1 Year. It had presented to us couple of months back a lease agreement, the terms of which were not acceptable to us and we conveyed the same. It had not shared with us this agreement at time of offer letter. The first term stated that the bank can in 45 days cancel the lease but the owner cannot cancel till 15 years? We have spent close to 3 years rent on the changes sought by bank for our existing building and the bank says that it can on whim and fancy vacate. New Branch anyway is big business for the..................
We have already given 15 KV power. Another term states that any additional power requirement of bank will have to be mandatorily given by owner else bank will pay and deduct. This is ridiculous. They harassed us till we got a transformer and now govt has given orders that for any load, transformers not needed. We asked them to wait for 10 days for us to get power from alternate sources but they didnt. They actually didnt open the bank till a few months later. Sheer wastage of 2 years of Rent.
The bank had initially said that it will allow review of rents at market rate after 5 yrs but in agreement, it wasnt mentioned and it said 15% on top of existing rent only every 5 years till 15 years.
I want to know what is legal status of the bank. Do we need to get a new offer letter? It is paying rent monthly currently and to my knowledge it is just a monthly tenant now?
Also, our insurance company asked that if there is any damage to building top floors due to short circuit at bank, bank needs to bear responsibility for damage and they need to pay insurance for that. The bank says that it doesnt have anything to do with it. Kindly clarify what is right.
Lot of 'DO DO BASAVANNAS" say that it is standard agreement but the terms are against owner. The hundreds of sufferers on this board alone (owners who have leased to banks) are witness that they didnt read the agreement before signing it. Seeking your advise. Can we continue in this way if the bank doesnt agree to change in terms.
CAclubindia
