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Tough battle for survival for most turf clubs

  July 16 , 2024
   

Racing in Bangalore has finally resumed after a frustrating hiatus. The prolonged battle with the government over various issues has come to an end, allowing races to take place last weekend thanks to wiser counsel prevailing. The former Mysore Race Club Chairman and ex-committee member of the Bangalore Turf Club (BTC) Chaduranga Kantharaj Urs played a pivotal role in resolving the deadlock, utilizing his governmental connections to break the impasse.

The government had demanded the resignation of the entire managing committee before considering granting a license to the club. The Chairman of the club resisted for a long time but eventually stepped down, facing criminal charges along with bookmakers for tax evasion and other matters. An interim committee of four, approved by the government, was formed to enable the immediate resumption of racing. This committee added five more members on Monday, thus forming a full committee which is now in charge of the club.

However, the BTC`s challenges are far from over. The High Court`s order for vacating the premises, issued last decade, is due for a hearing in Supreme Court. The BTC faces a tough task defending itself unless it can settle the matter amicably with the government. Recently, the Supreme Court refused to entertain a petition from the Madras Race Club after it lost possession of the Ooty racing premises following a Madras High Court order. The lease for the Ooty premises had ended in 1979, and the Supreme Court did not consider the matter worth taking up. Similarly, the BTC`s lease, signed in the 1980s, has expired, and the club has been operating on a status quo order from the Supreme Court until the matter is resolved. The decision regarding the Ooty racecourse may weaken BTC`s case.

Currently, the BTC is forced to operate without bookmakers as the previous batch is under investigation. The club may call for tenders if and when it gets approval to have bookmakers again. Betting on the club-operated totes has dropped drastically due to the steep GST on the face value of bets, leaving the club unable to generate the necessary revenue to sustain its activities. Bookmakers not only contributed substantial amounts in stall fees but also attracted a sizeable crowd. The BTC may need to implement significant cost-cutting measures and seek generous patrons who can subsidize racing, similar to the approach taken in Mumbai. Due to issues related to maintaining a perfect record of transactions by the bookmakers, this matter could continually place the club in a difficult position.

The Mysore Race Club, however, has been fortunate to secure a license to operate with bookmakers. Its license was kept pending because of BTC`s battle of attrition with the government. The club managed to get its way through only a few days ago and has done well to piece together a card for Wednesday. Mysore should carry on its activities without a hitch as the government doesn`t seem to have any major issue with the club.

Meanwhile, racing activity, which had been almost dormant since April, will pick up steam with racing commencing on Sunday at Pune followed by racing at Hyderabad. The monsoon season should see a packed racing calendar. The Bangalore Season is expected to run into September, with the Derby scheduled for the last day`s racing.

Racing is not out of the woods yet. The GST issue has considerably affected the income generated through the club-operated totalisator. The dependence on bookmakers has placed the clubs under tremendous strain as they are not equipped to manage financial distress in any other way. Barring clubs like the Hyderabad Race Club, which has had a harmonious relationship with the government throughout its existence and plenty of reserves to keep its activity going, other clubs face a continuous struggle for survival. It is a tough battle against odds in all aspects.

 
 
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Total Comments : 1
Posted by C. R. Dass on ( July 16 , 2024 )
Due to gst the race clubs going to slow death. No future for race clubs in India
 
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