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MRC lease dispute headed for a ``compromise``
Specials: By: Sharan Kumar
September 26 , 2024
   
   

In what can only be described as an unexpected bolt from the blue, the Madras Race Club (MRC) faces a government-led ambush over its prized premises. The official line? An ambitious plan to develop an eco-park. However, suppose anyone thinks this is purely an environmental love affair. In that case, they might want to hold their applause—the fate of this valuable real estate remains as foggy as a Chennai monsoon morning.

The club was slapped with a notice terminating its lease—even though the lease still has 30 more years to run. As if that weren’t enough, the government sealed the premises, throwing in some spicy allegations of land-use violations for good measure. Naturally, the High Court wasn’t too impressed, halting the action, much to the relief of the club’s patrons.

Meanwhile, in a turn of events worthy of a soap opera, the Advocate General and his deputy seemed to read from entirely different scripts. The AG assured the court that the government had only served a notice of cancellation. Yet, in a jaw-dropping twist, his deputy followed up by suggesting the government had already taken over the land! This little mix-up didn’t escape the court’s notice, which promptly chastised the government for its clumsy handling of the whole affair.

Rumour has it that the Madras Race Club is now gearing up to strike a compromise, perhaps realizing that a drawn-out legal battle could turn into a never-ending race with no winners. Word on the street suggests the club is eyeing a relocation to Hosur, about 40 kilometres from Bangalore, where it plans to set up a new racecourse. The government, in a rare show of generosity, has apparently offered a tempting 300 acres of land for this move.

 
   


Not one to leave all bets on the table, the club may retain about 10 acres in Guindy—the office, gallery, and other essentials—so that it can continue running inter-venue betting activities without a hitch. After all, why let a little thing like a hostile takeover get in the way of a good wager?

The government, however, has politely requested that the club clear out within 10 months. How thoughtful. As the finer details of this “compromise” are being ironed out, the government has managed to secure a three-week adjournment from the court to work out the logistics.

In short, the Madras Race Club might be on its way to Hosur, but this story is far from crossing the finish line. Keep your tickets—there’s bound to be more twists ahead.

On Thursday, the Tamil Nadu government informed the Madras High Court that it is in the process of negotiating a compromise with the Madras Race Club over the termination of a lease agreement involving 160.86 acres of valuable land in Guindy. However, the move has raised significant concerns regarding both legal propriety and the reputation of the state's legal commitments.

The division bench, comprising Justice S.S. Sundar and Justice K. Rajasekar, acknowledged the submission made by Additional Advocate General (AAG) J. Ravindran, who represented the district collector and granted a three-week adjournment on the contempt of court petition filed by the race club. This adjournment, however, came amid growing unease about the government's approach, which seems to sidestep critical legal processes.

AAG Ravindran sought a four-week adjournment, claiming that the government was working toward a compromise to avoid aggravating the issue. But Senior Advocate A.L. Somayaji, representing the race club, opposed this, requesting a shorter adjournment of two weeks, hinting at the urgency to address what he implied was a lack of transparency in the government's actions.

The race club’s contempt of court petition targets Tamil Nadu Revenue Secretary P. Amudha and Chennai District Collector Rashmi Siddharth Zagade, accusing them of failing to follow due process. The club argues that these officials violated an earlier assurance made by the Advocate General to the court, promising that the lease termination would proceed only after proper notice was served. Instead, the government issued a Government Order (GO) on September 6, which, the club claims, was an attempt to seize the land without legal formalities.

In a sharp rebuke, the division bench remarked that while the government may justify its actions under the guise of public interest, such actions cannot be taken at the cost of undermining the reputation of the Advocate General or the integrity of the court. This comment underscores a deeper concern—that the state’s hasty attempts to reclaim the land could not only damage its credibility but also cast doubt on its commitment to due process and legal ethics.

The move against the Madras Race Club seems fraught with flaws, particularly the disregard for court undertakings and procedural fairness, raising questions about the motivations behind the government's actions and their potential impact on the state’s legal standing.

The implications of the compromise the Madras Race Club may be forced to accept are nothing short of seismic for the racing community. While the club itself might escape relatively unscathed, with a shiny new location to continue its operations, the same cannot be said for those who depend on it—racehorse owners, trainers, jockeys, and the broader ecosystem of workers who make racing possible.

Building a new racecourse is no small feat. Even with the club’s functionaries working at a breakneck pace and absolute commitment, it could take up to two years to get a new track up and running. In practical terms, that means at the end of this current season (which, if we’re lucky, might be extended), the club will have to hit the brakes on racing if the deal goes through. And while the club leadership might view this as a mere pause, it’s a full stop for the professionals.

The reality? There will be a massive break in racing, and the ones bearing the brunt will be the trainers, jockeys, and other professionals who suddenly find themselves on the wrong end of the stick. Horses will need to be relocated to other tracks, and many might be forced into early retirement. Even if the club manages to pull off a racing resurrection in two years, rebuilding the professional community will be no small task. Trainers, jockeys, and staff will scatter, and it will take time to regroup. On top of that, the club will have the unenviable task of attracting a new audience in Hosur, a place where horse racing is about as familiar as snow in Chennai.

The racing crisis isn't confined to Madras. Racing, in general, is in choppy waters, and this latest blow in Chennai only exacerbates the situation. Bangalore Turf Club is also teetering on the edge of uncertainty, with a court verdict hanging over its future. Unlike Madras Race Club, however, Bangalore doesn’t have the luxury of financial reserves to cushion the blow if they lose their current location. Even if the government offers alternative land, Bangalore simply doesn’t have the funds to build a new racecourse from scratch.

Many believe the Madras Race Club is throwing in the towel far too early. With substantial financial reserves and ample potential support, the club could have mounted a robust legal defence. Instead, the fear is they’re folding their hand prematurely, leaving the racing community in Chennai—and beyond—reeling from the impending fallout.

The club has faced setbacks before. After losing the Ooty Race Course when the lease expired, they tried to reclaim it but failed to secure an extension, leading to a government takeover. To make matters worse, the Apex Court rejected their petition. Chennai racing has also been interrupted in the past when the government banned it for a long period. Though racing eventually resumed after a Supreme Court ruling, the club struggled to bring back large crowds or reconnect with second-generation racehorse owners, who had moved away from the sport.

Now, with the Madras Race Club seemingly giving up the fight yet again, there’s a growing sense that the once-great institution is quickly running out of track.

 
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