Bangalore Turf Club Limited vs State Information Commissioner. Writ Petition 18449/2015 and connected matters decided on 13 January 2021. Justice P.B. Bajanthri.
Judgment Link: https://karnatakajudiciary.kar.nic.in/noticeBoard/WP18449.2015_16012021.pdf
Relevant paragraphs: 28. In this context, it is necessary to reproduce
extract of the KIC order dated 01.07.2013 (Sri Umapathi S
vs PIO & The Secretary, BTC, (Para.10 and 11 of
W.P.18449/2015) “Firstly, land measuring
32,17,995 Sq.Ft, where the Bangalore Race
Court is existing was given on lease to the
Bangalore Turf Club as per the lease agreement
dated 09-09-1923 and except the collection of
betting tax, entertainment tax and license fee,
no other revenue was collected in respect of the
land till GO No.FD 14 CRC67 dated 02-11-1968
was issued by the Government. In the aforesaid
GO, lease amount of Rs.50,000/- per annum was
fixed and later it was enhanced to Rs.1,00,000,
5,00,000, 30,00,000. However, on the request
of the Turf Club to treat it on par with the KSCA
or Golf Club as a sports activity, and modify the
decision fixing the lease amount at
Rs.30,000,00/- per year was considered by the
government and issued the GO dated 05-09-
2000 leasing from 01-01-1989 to 31-12-1999
and from 01-01-2000 to 31-12-2009 for lease
amount of Rs.10,000,00/- per year and thereafter to increase @ 10% per year. Considering (a) the location of the land in the
heart of the Bangalore Metropolitan City, (b)
extent of 32,17,995 Sq. Ft of land being
leased FREE for 45 years from 09-09-1923 to
02-11-1968, (c) and then at the rate of
Rs.50,000/- per year i.e., at a very meager
rate of Re.0.015/- sq ft, and (d) then again at
a very meager rate of Re.0.92 per sq. ft. per
year for over a period of 21 years from 01-01-
1989 to 31-12-2009 (see CAG report), it is
evident to note that the government has
indirectly financed the Club.”
29. In the aforementioned writ petition in
W.P.58192/2013, the order of KIC dated 16.09.2013
(UMAPATI S vs Secretary, Mysore Race Club
Limited., Mysore, relevant Paras. 9, 10 and 11 reads as
under: “9) In the Government Order
No.FD.21.CRC.94 Bangalore dated 30-11-1996 it is
stated that an area of 153 acres and 39 guntas of
land in SY. Nos.4 and 74 of Kurubarhalli, Mysore
Kasaba Hobli has been leased on lease amount of
Rs.80,000/- Per Annum for the first five years
period, thereafter, lease rent was Rs.1.6 lakhs per
annum from 5-2-1985 to 31-3-1986, from 1-4-
1986 to 31-3-1991 it was Rs.1.6 lakhs per annum,
from 1-4-1991 to 31-3-1996 lease amount was
Rs.2 lakhs per annum, from 1996 to 2001 it was
Rs. 2.5 lakhs per annum and from 1-4-2001 to 31-
3-2006 lease amount was Rs. 2.75 laksh per
annum. From 1-4-2006 lease was ot renewed till
5-3-2013 and on 5-3-13 same has been renewed
vide Government Order PWD.213.BMS.2007
Bangalore dated 5-3-13 and Annual Lease amount
is fixed at the rate of 2% of the Annual Gross
Income of Mysore Race Club Ltd.”
7.2.82 Scrutiny of records in four test-checked
divisions revealed that fixation of concessional
rent while leasing Government lands/buildings
for non-charitable commercial purposes in
respect of four premises resulted in foregoing of
revenue of Rs.630.94 crore for the period from
1 April 2003 to 31 March 2008 as mentioned
below:
30. Perusal of the aforesaid information, it is
evident that petitioners have availed concession of lease
amount. If one takes note of the market value as on the
date of various lease deeds, it is evident that larger
chunk of monetary gains has favoured the petitioners
from the State Largesse. In fact, State Government
should have resorted to distribute the State Largesse
while adhering to Article 14 of the Constitution, Courts
have time and again held that State Largesse is required
to be distributed while adhering to Article 14 of the
Constitution.
31….one has to come to the conclusion that
State Largesse had not been distributed in the manner
known to law. At the same time, each of the petitioners are
beneficiaries of State Largesse at a concessional rate as is evident from the records and findings given by the KIC in its
orders read with audit reports.
32. It is necessary to take note of what is meant by
‘Largesse’ – Government is simply funding its Largesses
towards private charities anyway, and politicizing the nonprofit world to an unprecedented degree in the process
Compiled by S. Basavaraj, Advocate, Daksha Legal. raj@dakshalegal.com
Daksha Legal 