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This is an archive article published on March 18, 1999

Race course land issue referred to BMC administration

Mumbai, March 17: The BMC's improvements committee on Tuesday referred back to the administration the issue of renewal of lease of Mahala...

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Mumbai, March 17: The BMC8217;s improvements committee on Tuesday referred back to the administration the issue of renewal of lease of Mahalaxmi Race Course land to the Royal Western India Turf Club RWITC.

Committee members came down heavily on the RWITC for paying a pittance to BMC as rent for the 10,22,806-square yard land which generates the club an annual income of nearly Rs 90-100 crore. The club had been paying BMC Rs 7.50 lakh per year earlier. Later in the course of the 20-year lease, the rent rose to Rs 13 lakh.

RWITC, whose 20-year period of lease expired on May 31, 1994 requested for renewal of lease for 30 years more. Since the original 99-year lease period ends in 2013 and the land has to be revested with the government, the civic administration proposed renewal of lease for a period of 19 years from June 1, 1994 to May 31, 2013. The rent would be Rs 20 lakh for the first year, ie., June 1, 1994 to May 31, 1995, and would be increased every year by 10 per cent over the previous year8217;s rent, as per the proposal.

Severely criticising the club8217;s functioning, committee members said while RWITC rented out premises for marriages and functions, raking in handsome returns, it showed very low figures to BMC.

Samajwadi Party member Yusuf Abrahani said the matter should be recorded, but the committee decided against it, arguing the issue would get enmeshed in legal wrangles and cause further harm to the cash-strapped BMC. Committee members then sought to refer the matter back to the administration.

Later, Abrahani told reporters it was his party8217;s demand that two corporators should be put on the club8217;s committee and some other civic officials should be asked to keep a watch on the club8217;s functioning. The functioning of all such clubs in the city should be closely watched to gather sufficient revenue for BMC, he said.

 

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