The Bangalore Turf Cub which has just recovered from the royalty impasse with RWITC which had resulted in the signals being cut off for Pune races is expected to get a rude shock by the government. The PWD Department which has leased the land to Bangalore Turf Club has recommended to the government to increase the lease rent from the existing Rs 60 lakhs per year to two per cent of the turn over of the club on the totalizator pools. This in effect means the club will end up paying a whopping Rs 36 crores as the lease rent. The Mysore Race Club will have to pay about Rs 16 crores as lease rent.

One of the members of the club who highlighted the government`s proposed hike in lease rent at the annual general body meeting of the club asked the club mandarins as to what steps the club was taking to bail itself out of the deep financial mess that the club finds itself very often. The hike proposed by the government in effect means the increase in the betting tax from eight to 10 per cent in terms of the effect that it will have on the finances of the club. The club cannot afford to increase its commission on tote because it will have a spiralling effect on the lease to be paid to the government annually.

The turf club is battling on several fronts for its survival. The service tax demand, the ESI penalty are all sure to hurt the finances of the club in a big way. The new lease levy proposed by the government is sure to impact the club in all its activities including paying of stake money as the club has to make provisions for the additional demand from the government.

The government is planning several methods to increase its sources of revenue after much of the taxes it was collecting will go under the GST. The two per cent lease on turnover is expected to be levied on all the land leased to various sports associations which have substantial income. The Karnataka Cricket Association and the golf clubs will all come under the ambit of this proposed levy on lease rent.

The onus on the club is to ensure that all possible financial measures are taken to generate as much revenue as possible. The club has had a temporary truce with RWITC and BTC has come up with a fresh proposal by November 1 to keeping status quo going. The club can ill afford to have any strife at this point of time.

Outgoing Chairman Satish Chandra denied that there was a proposal to levy two percent turnover tax as lease rent by the government. ``Though one of the club members raised the issue of the proposed levy in the general body meeting, the club is yet to hear on this matter. As such, the matter is only speculative in nature at the moment. ``

In the meanwhile, elections to the Managing Committee of the Club were held on Monday. Kenneth Pinto, Vivek Ubhaykar and Jagannath were elected as Stewards of the club. Fazal Ur Rahman and Chaduranga Kantharaj Urs were elected as Committee Members.

The new Chairman will be elected on Wednesday. The new chairman will have his task cut out as he has to not only steer the club through the crises confronting it but also run it on a stringent budget. An efficient administrator for the club is the need of the hour.

The outgoing Chairman A C Satish Chandra did a good job during his stint. He struggled hard to solve the royalty issue and was successful in resolving the issue to a great extent by actively engaging himself in dialogue with RWITC and got the Mumbai club to give signals without any pre-condition. The new chairman also needs to give the same level of time and commitment that Satish Chandra showed.

In the meanwhile, the racing public is happy at the restoration of off-course betting of Pune races both at Bangalore and Mysore. One hopes the problem of royalty will be resolved with the spirit of give and take that was displayed during the informal meeting held during the meeting of the turf authorities of India at Mumbai and the deference shown to the wishes of the chairman of various turf authorities of India.