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The Royal Western India Turf Club transferred a 120-acre parcel of the Mahalaxmi Racecourse to the Brihanmumbai Municipal Corporation for a park project. In return, the Mahayuti government renewed RWITC's lease on 91 acres with an INR 133-crore lease rent concession for 30 years and waived nearly INR 120 crore in past dues, totaling an INR 253-crore loss for the state and BMC. Despite the finance department's objections, the State Cabinet approved the proposal. RWITC had requested a reduced lease rent and waiver of arrears, citing its contribution to the park project. Attempts to contact RWITC's secretary were unsuccessful.
The Royal Western India Turf Club (RWITC) has exhibited a commendable gesture by transferring a 120-acre portion of the Mahalaxmi Racecourse to the Brihanmumbai Municipal Corporation (BMC). This land transfer aims to facilitate the construction of a park akin to London's Hyde Park and New York's Central Park. In recognition of this gesture, the ruling Mahayuti government approved the renewal of RWITC's lease on 91 acres of the property in June. However, this approval has come at a significant cost to the exchequer, as the state has granted an INR133-crore concession in lease rent for the next 30 years and waived past dues amounting to nearly INR 120 crore. Advertisement
This decision results in a financial setback of INR 253 crore for the state and BMC. The state cabinet passed the proposal despite objections from the finance department. Documents related to the proposal presented before the cabinet are in HT's possession. Following extensive deliberations with the state government, RWITC agreed to transfer 120 acres of the 211-acre racecourse land to BMC. For the renewal of its lease on the remaining 91 acres, RWITC petitioned BMC for an annual lease rent of INR 1 crore, stipulating that the annual increment should not exceed INR 3 lakh. RWITC also requested that the government waive the INR 119.99 crore in outstanding lease arrears.
The urban development department (UDD) presented a proposal to the cabinet that referenced a letter from the municipal commissioner. According to the letter, government resolutions determined that M/s RWITC's lease rent for the year 2024-25 should amount to INR 5,46,34,705, with arrears from January 1, 2017, to December 31, 2023, totaling INR 119,98,04,039. They submitted the representation from M/s RWITC for an appropriate decision. On June 20, the BMC commissioner advised the state government to apply the GR dated March 14 to the club's built-up area at concessional rates.
The finance department examined the proposal and concluded that, according to UDD's GR, the lease rent for a 'Class A' gymkhana is INR 5.46 crore per year at the rate of INR 1,09,590 per square metre for a total of 374,840.09 square metres (approximately 91 acres) of racecourse land. They pointed out that reducing the lease rent to INR 1 crore would cost the state government and BMC INR 133.8 crore over the next 30 years. Consequently, they opposed the proposal, fearing it could set a precedent for similar future demands.
In response, the UDD informed the cabinet that RWITC had shown commendable goodwill by transferring 120 acres of land for the 'Central Park' project. This transfer will contribute significantly to the project's timely and successful completion. Consequently, the UDD proposed that the cabinet waive the arrears for 2017 to 2023, apply a rate of 1% of 10% of the ready reckoner rate to the constructed area, and implement a concessional lease rent for the open racecourse land, with an annual increase capped at 3%.
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