BMC, RWITC impasse over outstanding dues of ₹5.99 crore
The elite club, which runs the racecourse, has reportedly failed to submit a crucial undertaking as per a condition laid down by the state government.
Mumbai: The BMC has reached an impasse with regard to the collection of pending dues of ₹5.99 crore from the Royal Western Indian Turf Club (RWITC) in Mahalaxmi. The elite club, which runs the racecourse, has reportedly failed to submit a crucial undertaking as per a condition laid down by the state government.
The condition and undertaking pertain to a likely increase in rent and interest on arrears that will accompany the renewal of the lease that ended in May 2013. RWITC has been applying to the state government for renewal ever since, and is willing to pay the pending dues. However, as a civic official told Hindustan Times, the outstanding dues will be accepted by the BMC only if RWITC submits this undertaking.
“RWITC is willing to pay the outstanding dues of ₹5.99 crore but they are not willing to give us an undertaking that they will pay a potentially increased rent after lease renewal with interest from 2013 onwards,” said the civic official. “That is the condition laid down by the government. But RWITC has not submitted this undertaking for the last one month. So we are refusing to accept their outstanding dues.”
The civic official said that currently there is no policy for renewal of the RWITC lease by the state government which will provide clarity on the method of renewal, on the method of payment and also on the terms and conditions to renew this lease.
Niranjan Bhati, secretary, RWITC, when contacted, refused to comment on the issue.
Out of the 8.5 lakh square metres (around 210 acres) of racecourse land, the BMC owns one-third while the state government owns the rest. In 2013, the civic body passed a resolution for converting the 8.5 lakh-square-meter land into a theme park, and the municipal commissioner had asked officials to write to the state government to hand over its portion of the racecourse land to the BMC.
Since 2013, three letters have already been written to the state government to hand over the whole of the racecourse plot to the BMC. The letter which will be dispatched now is just a reminder.
The Mahalaxmi Racecourse was set up and given on lease by the BMC to RWITC in 1914 for 99 years. It is a Grade II-B heritage site.