Madras Race Club told to pay rent arrears of Rs 730.86 cr in 1 month

CHENNAI: The Madras Race Club has been told to pay rental arrears of Rs 730.86 crore in one month for the 160 acres land owned by the government, clearing the dues till August, 2017. In 1946, 160 acres and 86 cents was given on lease for 99 years to the MRC with Rs 614 and 13 paisa rent per annum.

Subsequently, the Mambalam - Guindy Tahsildar sent a notice to the Madras Race Club asking them 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.

Rejecting this explanation, the government ordered the MRC to pay the rent arrears of Rs 730,86,81,297 till 2017.

Assailing this, the MRC moved the Madras High Court. Hearing the petition, Justice SM Subramaniam said that the government has the authority to increase the rent based on the market value and ordered the MRC to pay the rent arrears of Rs 730.86 crores in one month.

"In case of any default, evict the plaintiff with the help of police personnel and take steps to take over the land," the court ordered the government.

Further, the court said: "The government should have re-examine the pre-independence lease agreement and send a notice in one month asking them to pay the final rent arrears of Rs 12,381 crore within two months time. The 160 acres of land reserved for a few rich people has no public interest and that this land located in the heart of the city can be reclaimed and used for public welfare. Increasing the lease amount of government lands is a policy decision of the government and it cannot be said that it is improper or illegal."

"An inevitable question is whether any bureaucrat of the State, honourable judges, ministers, politicians and any person as a matter of fact will lease out their property for a meagre annual rent of Rs 614 for 99 years," the court wondered.

Pointing out that the State government is facing financial crunch, the Madras High Court also directed the government to re-examine the lease agreements of government lands across Tamil Nadu to ensure public welfare and protect government revenue.