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Trowa land case resolved

April 4, 2013
in Uncategorized
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TrowaTheatre-LandCaseREsolvedThe pending issue concerning the lease of land at Changjiji where the Trowa Theatre stands, today, has now been resolved.

The government will not sell the land and the land has been leased under newly approved terms and conditions in accordance with the Land Act 2007.

In 2006, the government land measuring about 19,000 sq feet at Changjiji was leased to a private individual. It, however, became a bone of contention between the government and the theatre-owner mainly because of the raise in the lease rate.

The rate was increased from Nu.2 to Nu.42 per sq feet per annum.

The owner could not come to an agreement with the government on the abrupt increase of the lease rate. This has also resulted in an unpaid rent amount adding up to millions of ngultrum.

After an extensive review by a dispute settlement committee, the lease rate was brought down to Nu. 20 per sq feet following the Land Act and the existing government rate.

The earlier rate of Nu. 42 was not within permissible limits of the Land Act.

After paying the lease dues of about Nu.1.4 million, a new lease agreement has been signed between the Ministry of Works and Human Settlement and the theatre-owner.

The land has been leased to the existing owner for another 30 years as well.

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