Defence ministry stalls transfer of Lincoln House, purchased by Cyrus Poonawalla

MUMBAI: The Union defence ministry has blocked the transaction of Lincoln House, the two-acre palace property at Breach Candy purchased by industrialist Cyrus Poonawalla from the US government for Rs 750 crore last month.

Mumbai city collector A Shaila told TOI that her office had received a letter from the Centre, directing it not to transfer the property. The letter, accessed by this newspaper, said, "It is requested that the transaction between US government and Cyrus Poonawalla may not be entertained for mutation. The concerned sub-registrar's office may please be directed accordingly to safeguard government interests."

Shaila said the Indian government is the lessor; it owns the land on which Lincoln House stands. "The defence ministry says it has not been informed about the property transaction," she said.

The US consulate in Mumbai operated from Lincoln House for several decades and was a landmark location in the city till it shifted to Bandra-Kurla Complex around four years ago.

Shaila said the sub-registrar has been told not to register or transfer the property following these instructions. When contacted, Poonawalla's son, Adar, who negotiated the deal with US government officials, said he would not comment because of a "confidentiality clause" in the agreement.