Guindy MRC sealed over Rs 730 cr rental arrears

The historic Madras Race Course Club in Guindy, one of the oldest clubs in India, has been sealed by the revenue department on Monday following a Madras High Court order. The sealing was carried out due to the non-payment of rental arrears amounting to a staggering Rs 730 crore for the government-owned land on which the club is situated.

The Madras Race Course Club, which spans 160 acres, had been under pressure to pay an outstanding lease amount, with a notice being issued by the revenue department a month prior. Despite the notice, the club administration failed to settle the dues, leading to the enforcement of the court’s directive. The revenue department, with police assistance, sealed the club’s premises, which covers the entire 160-acre property.

A revenue department official warned that the land now falls under the department’s control, and any unauthorized entry will result in legal action.

The origin of the issue dates back to 1946, when 160 acres and 86 cents of land were leased to the Madras Race Course Club for 99 years at an annual rent of Rs 614 and 13 paisa. However, in December 1970, the Mambalam-Guindy Tahsildar issued a notice to the club, informing them of a revised rent based on updated market values.

In response, the Madras Race Course Club argued that the original lease agreement from 1946 did not include any provision for a rent increase. The Tamil Nadu government, however, rejected this argument and issued a notice demanding Rs 730.86 crore in arrears, covering the period up to 2017.

This dispute eventually led to a legal battle in the Madras High Court, where the court ruled in favor of the government, affirming its right to revise the rent in accordance with market values. The court ordered the Madras Race Course Club to pay the outstanding arrears.

Established in 1777, the Guindy Race Course is the oldest racecourse in India and has been a significant landmark in Chennai for centuries. The sealing of this historic site marks a major development in the ongoing dispute between the club and the Tamil Nadu government, with the future of the racecourse now uncertain.