The Public Accounts Committee (PAC) of the Karnataka Assembly has now asked the state government to take action to stop all activities in the Bangalore Turf Club including racing from December 2. The government has also been directed to collect over Rs 30 crore in dues from the club before the end of the month, reports said.
The PAC comprising 15 MLAs is headed by Congress MLA and former Minister HK Patil. The PAC has also directed the state legal department to submit a report of steps taken to settle the dispute with the club regarding a case in the Supreme Court by the first week of December.
Deccan Herald reported that while BTC is expected to pay Rs 32.86 crore, which is 2% of its turnover from 2010-11 to 2017-18, it has only paid Rs 5 lakh annually.
A lease agreement with the government and the BTC had ended in 2009 following which the government had asked the land to be vacated but the club refused to do the same and the matter eventually landed up in the Supreme Court.
Addressing reporters on the same, HK Patil suggested there is a “tacit” understanding between the BTC members and state bureaucracy which had led to the lengthy delay in solving the dispute and maintaining the status quo.
While several PACs in the past had suggested to move the BTC to the city outskirts, no government had acted on the recommendations, The Hindu quoted him as saying.
He further mentioned that even the CAG report in 1998-99 had found the state exchequer was losing Rs 71.87 crore.
Further, Rajneesh Goyal, Additional Chief Secretary of the Public Works Department (PWD), has been directed to ensure that the rental dues from the club from the last seven financial years are also collected.
However, speaking with The Hindu, a club member said the PAC directions were not legally sound as the Supreme Court is yet to hear a special leave petition on the issue. He also suggested that there could have been no clause of paying rent as the government had given the land for free initially.
This development comes less than a week after the Bangalore Turf Club was vandalised following a horse racing accident.