Poona Club pays Rs 3.09 cr penalty, District Admin not ready to spare the rod

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The government land had been allotted on lease to the club at two locations—Bund Garden Road and about 100 acres from the Golf Course at Yerawada in 1885 for a 99-year lease. The lease term finished in 1983 and it was further extended till 2013. Recently, the government further extended the term till 2037, provided they pay up the penalty which has been levied in this period.

The matter came to light when the administration found that the prime government land was being used for commercial purpose with the club operating a restaurant and a bar, and having shops within the campus, a beer shop and also hosting private weddings.

“The club has accepted that it has erred and has paid the penalty for violation of rent agreement amounting to Rs 3.09 crore. However, the structures providing commercial gain are located at the space meant for servant quarters, and therefore, it has to be razed. The club can, in no way, take it for granted that if they have paid the fine, they can continue using these structures. We will soon issue a notice to pull down these structures,’’ said resident deputy collector Rajendra Muthe.

Meanwhile, the club was served a notice of Rs 234.79 crore last year too for defaulting rent payment whereby the administration had issued notice for the Bund Garden road plot. The decision had been contested by the club and the issue is still pending with the government. “We have that notice too but we are waiting for the government’s decision on the matter,’’ said Muthe, adding, it had also come to their notice that from 1984 to 2016, the club had not paid the rent for some months and so the administration levied an additional fine of Rs 56 lakh, which the club authorities agreed to pay.

As per the rules, the lessee is not supposed to use the land except for the purpose of a playground or recreation facility and activities for the members’ benefit. The rules further state that lessee shall not sublet the land.
Poona Club Chairman Swastic Sirsikar, when contacted, said they have paid the amount as they do not want the government to take back the land. However, they are not convinced that there is violation and would seek legal opinion.

The Poona Club presently has nearly 4,900 members, which include life members, permanent members and temporary members and the membership fees varies from up to Rs 30 lakh for a life member to Rs 20 lakh for a permanent member.

Reacting to the issue, members said that it is due to callousness of some individuals that the amount is going towards penalty.

Former Divisional Commissioner, Pune and former PCMC commissioner Dilip Band, who is a permanent member of the club, said that it was during 2011 when he was the Divisional Commissioner, the decision of opening a restaurant and bar was taken by the then committee.

“I had specifically told the committee that it was violation of rules as they cannot start any commercial venture on leased government land and that they should approach the government before starting the project. The committee did not pay any heed,’’ he said. The penalty was expected as it is clear violation of rules, he added.

Another member, Fatechand Ranka, said that although the club has paid the amount, it should not be drawn from the membership fee but should be taken from those who have defaulted the rules. Another member corroborated Ranka, saying that those involved in irregularities should be asked to pay up and an internal inquiry should be conducted.

Rekha Krishnan, a member who has been a former chairman, refused to comment on how the structures were leased out and said that it would not be appropriate for her to comment on the issue.