Unregistered Lease Deed
A charitable Trust took a building with land and compound (Independent building) from a Power of attorney holder of a US citizen for its' business. The first lease deed was executed in 2006 for 2 years and subsequently renewed it for 2 years in 2008, 2010, 2012, 2014 and last lease expiring on 2016. All these lease deeds were unregistered and there is a clause stating further renewal under mutual terms. Now the POA holder denied to extend the lease period. Because, Rent was paid in the name of the POA holder and TDS deducted for all these years was 10% because the POA is a Indian citizen, but the trust auditors objected that the Owner of the building is a foreign citizen hence the TDS should be 30% as per the IT Department and further rent should be paid directly in the name of foreign landlord by DD as POA holder is not the landlord.
As the lease is not renewed, the trust obtained an Injunction from the court restraining force full eviction. POA holder is not moving eviction petition as he was having a break in POA in between these years, the trust members have not seen the POA agreement.
The trust members contacted the US Landlord who never came to India in the last 25 years, he is not bothered and have no time to discuss the matter too.
Under these circumstances, how the trust move forward? They need the building for there business and cannot vocate for 2 years.