The Union Ministry of Home Affairs (MHA) has sought the progress report of ongoing lease deed dispute of Chandigarh Golf Club from the UT Administration.
Sources said, “The MHA has sent a letter to the UT Administration asking about the progress in the ongoing lease deed issue of Chandigarh Golf Club (CGC).”
“The MHA has asked the UT Administration about the status of the lease deed dispute of Golf Club and the initiatives it has taken so far to resolve the issue,” said sources.
Sources informed, “The UT Administration is now preparing its reply that is to be sent to the MHA and is also likely to give details of the ongoing arbitration process between the CGC and UT Administration on the issue of lease deed.”
At present, the UT Administration is considering the CGC’s plea for reducing the lease amount that has been finalised by the UT recently.
The Golf Club had filed a petition challenging the UT Administration's decision of enhancing its lease amount enormously and charging Rs9.27 crore as rent, including interest, for five years (March 2008- 2013).
The Punjab and Haryana High Court had appointed retired SC judge Kuldip Singh as mediator to arbitrate between Chandigarh Golf Club and UT Administration to resolve the issue of the renewal of lease of nearly 132 acres.
So far, about five meetings of the CGC and UT Administration have been held, yet both parties have not reached a consensus on the issue of lease amount.
While the CGC is demanding reducing the annual lease amount below Rs1 crore, the UT Administration has turned down the request.
In another letter earlier, the MHA had told the UT Administration that the Golf Club has fixed deposits of Rs13 crore and can easily pay the renewed lease amount.
The MHA had also pointed out that with a simple 10 percent rate of interest on fixed deposits, the Club receives Rs1.3 crore annually. And, with this huge amount, the Club can easily pay the renewed lease amount.
The Golf Club management had approached the Union Ministry of Home Affairs last year after the renewal of lease deed by the UT Administration.
The Golf Club spreads over an area of around 132 acres and has 1,800 members. The lease deed expired on March 15, 2008. The Club was paying Rs8,200 per month and Rs3,960 lease money annually from March 16, 1988 to March 15, 2008 to the Administration.
As per the earlier lease, which was for 20 years (1988 to 2008), the annual lease amount of the Club, established on August 25, 1966, was around Rs1 lakh.
However, after the revision of the lease amount, it reached up to Rs1.61 crore annually.