‘Pay Rs 731 cr rent arrears now, Rs 12,381 cr in 2 months’

CHENNAI: Rejecting the Madras Race Club’s plea, the Madras High Court ordered it to pay the rent arrears of Rs 730.86 crore in a month, and also directed the State government to issue notice seeking final arrears of a whopping Rs 12,381 crore within two months.

In 1946, the club had taken the 160.86-acre government land on lease for 99 years for a rent of Rs 614.13 per year. The Mambalam - Guindy Tahsildar sent a notice to the club asking it pay the revised rent from December 18, 1970. But the club argued that the 1946 agreement contained no clause regarding rent hike.

Rejecting this contention, the government ordered it to pay the rent arrears of Rs 730,86,81,297 till August 2017, which the club challenged legally.

However, Justice SM Subramaniam said the government has the authority to increase the rent based on the market value and ordered the club to pay rent arrears of Rs 730.86 crores within a month. If it failed to pay up, it should evict the club and take over the land, he said.

“The government should re-examine the pre-independence lease agreement and send a notice in one month asking it to pay the final rent arrears of Rs 12,381,35,24,269 (Rs 12,381 crore) within two months. The 160 acres of land reserved for a few rich people has no public interest and 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 and it cannot be said that it is improper or illegal.

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

Pointing out that the government was facing financial crunch, the court also directed it to re-examine lease agreements across the State to ensure public welfare and protect government revenue.