The Madras High Court has directed the more than 100-year-old Cosmopolitan Club in Chennai to pay Rs 25 crore to the Tamil Nadu Revenue Department by May 30 towards revised rent for 77.70 acres of prime land leased out to it for the past 25 years.
"The court is of the view that the club is occupying 77.70 acres of prime land in the centre of the city and therefore the government is entitled to receive fair rent on the said property," Justice CS Karnan said passing orders on a petition by the club challenging a notice by the department.
In January 29, 2014 notice, the Tahasildar of Mambalam-Guindy Taluk had asked the club to remit Rs 119,78,58,312 being the revised rent for the period between July 1, 1971 and June 30, 1996 that is for a period of 25 years on the basis of the market value and on the June 16, 1998 report of the Accountant General (AG).
Besides, the order has been passed on the strength of the said government order and the AG's report after determining the market value of the property.
"Therefore, the impugned order is well considered on the basis of the said government order and the market value. As such, the impugned order is sustainable under law and also suitable for execution," the Judge held.
Recalling the long legal battle between the club and the government over the lease amount, the judge noted that the government allotted the land in December 1956 for the purpose of Golf Course. The club by expending several lakhs of rupees took extensive steps to develop the Golf Course.
The department served the notice seeking payment of Rs 119,78,58,312 as lease amount for the period from July 1, 1971 to June 30, 1996 based on the communication received from the AG.
He directed the club to pay Rs 25 crore at Rs one crore per year without prejudice and also ordered the government to issue show cause notice thereafter and conduct a comprehensive inquiry and decide actual arrears of rent for the relevant period.
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