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PAC for 'strict action' against Racecourse

The PAC also urged the government to ensure that the best legal minds were hired to represent it in the case filed by M/s BJR in the courts

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Criticising the state government and BMC for ignoring violations by the Royal Western India Turf Club Ltd (RWITCL), the state legislature's Public Accounts Committee (PAC) has called for "very strict action" to be taken for the breach of lease conditions.

The PAC, in its report tabled in the state legislature's recent monsoon session, has also called for officials who turned a blind eye to these violations at the Mahalaxmi Racecourse to be pulled up.

In its 2013 performance audit on 'Government land given on lease,' the Comptroller and Auditor General (CAG) had noted that though the RWITCL's lease agreement was due to expire on March 31, 2013, the lessee in "violation of the terms of lease agreement," entered into an agreement in July 2008 with M/s BJR for catering services up to June 2018.

"Further, though the MCGM (BMC) was realising revenue of only Rs 20 lakh per annum towards lease rent on the entire leased plot, the lessee continued to make financial gain of Rs 3.25 crore per annum from the Conductor (BJR) without passing on any share to MCGM," the CAG added.

"Though strict action was necessary against Turf Club for breach of terms and conditions, no such action has been taken till date," noted the PAC, which is chaired by senior Congress legislator Gopaldas Agrawal. It said if violations occurred or third-party rights were created, the government chose to take little action except issue notices or levy fines to regularise it, "which sent a very wrong message and... promoted breach of conditions." The committee called for "very serious and stringent action" to be taken against such lease holders to "send a right message."

"If need be, the government must initiate strong action like taking back the possession of the plot or filing of criminal cases to deter land holders (from committing violations). In this case, very stringent action must be taken against the occupant with consideration to the new policy regarding 'W' lands and the decisions of the court...," the report said.

The PAC also urged the government to ensure that the best legal minds were hired to represent it in the case filed by M/s BJR in the courts.

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