HC stays DC order of Rs 8.6 crore, directs club to pay 50%

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Jul 25, 2014 12:29 IST

The Punjab and Haryana high court while staying the UT deputy commissioner order to the Chandigarh Golf Club (CGC) to deposit Rs 8.59 crore as its lease rent for the last six years, has directed the CGC to deposit only 50% of the amount for the time being.

The directions came from the division bench comprising justices SK Mittal and Mahavir Singh Chauhan while hearing a petition filed by CGC challenging the DC’s July 19 order.

The court also issued notice of motion to the administration for filing its reply by August 25 on the CGC’s contentions in the petition.

On July 19, DC Mohammed Shayin directed the CGC to deposit Rs 8.59 crore within 15 days as lease rent from March 16, 2008, to March 15, 2014 that was calculated at 7% increase per year.

The order had made it clear that if the CGC failed to deposit the amount, it would be sealed.

The community centre building in Sector 6 comprising 132 acres and a swimming pool including its extension was leased out to CGC on August 3, 1971.

The lease period was extended from time-to-time and the last extension was granted for 20 years from March 16, 1988, to March 15, 2008.

After the expiry of lease period, a tussle started between the CGC and the administration over the lease rent.

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