Race club rent arrears: HC orders status quo, asks govt to respond

CHENNAI: Hearing an appeal moved by the Madras Race Club against a single-judge’s order directing the government to recover thousands of crore in rental arrears, a bench headed by acting Chief Justice T Raja directed the authorities to maintain status quo till third week of June when it would hear the matter next.

Noting that the government has the authority to increase the rent based on market value, Justice SM Subramanian had ordered the club to pay Rs 730.86 crore in rental arrears in one month for the 160.86 acres of government land it had taken on lease in 1946. This apart, the club was also told to pay full arrears of a whopping Rs 12,381crore within two months.

If the club failed to pay up the amount, the Revenue department should take steps to evict it with the assistance of police, and take over the land that was leased to the club, Justice Subramaniam had directed the State government.

“The government should reexamine the pre-independence lease agreement and send a notice in one month asking the club to pay the rent arrears of Rs 12,381crore 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,” the judge had noted.

Aggrieved by this, the club then filed an appeal petition in the Madras High Court against the single judge’s order.

When the appeal came up for hearing before a division bench comprising acting Chief Justice T Raja and Justice D Bharatha Chakravarthy, the counsel representing the MRC submitted that there was no clause regarding rent increase in the 1946 lease agreement. Despite that, the rent was increased.

Taking note of the submission, the court said as there was no clause in the agreement regarding increase in rent, the matter should be examined in detail. Directing the government to respond to the petition, the bench adjourned the next hearing to June third week and ordered that the status quo should remain until then.