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This is an archive article published on February 8, 2023

BMC sends demand notice to NSCI, seeks Rs 61 crore in pending share of revenue

Located in Worli at South Mumbai, the NSCI is one of the upscale private clubs in the city and is spread across a 18-acre plot.

The letter also mentions that the dues have not been cleared since 2013.The letter also mentions that the dues have not been cleared since 2013.
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BMC sends demand notice to NSCI, seeks Rs 61 crore in pending share of revenue
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THE BRIHANMUMBAI Municipal Corporation (BMC) has issued a demand notice to the National Sports Club of India (NSCI), demanding outstanding revenue of Rs 61.46 crore, which the civic body is supposed to receive from the club administration as its share for allowing the club to hold private events within the club premises, which is owned by the BMC.

When contacted, a representative from NSCI said he was not aware of any such notice.

Located in Worli at South Mumbai, the NSCI is one of the upscale private clubs in the city and is spread across a 18-acre plot.

Sources in the BMC said that according to a mutual agreement, the NSCI is supposed to pay a share of 33 per cent of the revenue that it generates from hosting private programmes, other than sporting events, on the premises of the club. In the notice issued by the Estate department of the civic body, it has also been stated that the total outstanding amount also includes 18% penalty, implemented as late charges.

The letter also mentions that the dues have not been cleared since 2013. “Earlier, on December 24, 2019, a demand letter for recovering Rs 101 crore worth of outstanding dues was sent to you (NSCI). However, following the request from your end, the outstanding amount has been revised to Rs 61.46 crore and this amount should be paid to the civic authorities through cheque,” stated the letter.

The BMC, in the letter, has said the overall payment can be made through four installments over a period of two years and the first installment needs to be paid within the next 15 days. Unless the dues are cleared, the civic body will not issue a no-objection certificate for any requirement within the club, said the BMC. “Last time, when we had issued them a letter, they requested us to revise the amount, following which a revised audit was carried out and a fresh notice was sent. Now, if the first installment is not being paid within 15 days, then we will take a call on the next decision,” said a civic official.

“Till date, they had paid approximately only Rs 2 crore, which was pending from a separate issue. In this regard, no money has been paid to the BMC in the past 10 years,” said the official.

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Meanwhile, a representative of the NSCI said he was not aware of any such notice and in case the club has received it, an unanimous decision on the next course of action will be taken up by the club committee after scrutinising all the legal aspects.

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