Rs 730 crore rental arrears: Madras HC suspends sealing of Madras Race Club

CHENNAI: Soon after the Tamil Nadu Revenue Department sealed the Madras Race Club, the Madras High Court suspended the lock and seal order for two days, stating that taking possession of the premises without giving any notice was an illegal and high-handed act on the part of the government.

Hearing the urgent mention moved by the Madras Race Club against the lock and seal of its premises, a division bench of Justice SS Sundar and Justice K Rajasekhar said the authorities should have issued notice of terminating the lease before sealing the premises.

Also read: Madras Race Club in Guindy sealed due to non-payment of rental arrears of Rs 730 crore

Madras Race Club failed to pay the money, with police assistance the department sealed 160 acre of the club as per the court order.

Since the land is under the control of the revenue department, legal action will be taken against anyone who trespasses, department official said.

Later, the Mambalam - Guindy Tahsildar sent a notice to the Madras Race Club asking them to pay the revised rent from December 18, 1970.

In response to the notice, the Madras Race Club stated that the agreement made in 1946 contained no clause regarding rent hike.

The Tamil Nadu government, refusing to accept the response, issued a notice demanding the payment of Rs 730,86,81,297 as arrears of rent till 2017.

The Madras Race Club filed a case in the Madras High Court. Later, the MHC said that the government has the authority to increase the rent based on the market value and ordered the race club administration to pay the rent arrear.