HC to decide on UT Golf Club lease renewal after mediation fails | chandigarh | Hindustan Times
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HC to decide on UT Golf Club lease renewal after mediation fails

After observing that the issue regarding lease renewal of around 132 acres Chandigarh Golf Club (CGC) land was not going nowhere after mediation had been tried between the Club and Chandigarh administration, the Punjab and Haryana high court has now said that the matter would be decided by the judiciary.

chandigarh Updated: Mar 24, 2014 23:47 IST
HT Correspondent

After observing that the issue regarding lease renewal of around 132 acres Chandigarh Golf Club (CGC) land was not going nowhere after mediation had been tried between the Club and Chandigarh administration, the Punjab and Haryana high court has now said that the matter would be decided by the judiciary.


The decision came from a division bench headed by justice SK Mittal on Monday on a petition filed by Chandigarh Golf Club.

The UT administration had proposed that CGC should pay Rs 1.20 crore a year as lease amount to the administration. Previously, the court had appointed justice Kuldip Singh (retd) as the mediator and given suggestions to both the parties with the recommendation for `36 lakh per year lease amount that was opposed by the UT administration.

The case
The CGC had petitioned the high court challenging the UT administration's decision of enhancing its lease amount enormously and charging of Rs 9.27 crore as rent, including interest for five years (March 2008- 2013).

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 Rs 1 lakh. However, after the revision of lease amount in November last year it reached up to Rs 1.61 crore annually.

In a bid to to resolve the ongoing lease tussle with the CGC, the UT administration had in June made a proposal to reduce the lease amount by Rs 36 lakh, making it to Rs 1.25 crore annually.

Timeline :
August 25, 1966:
Golf Club registered under Registration of Societies Act
2012
November 15 and 16: Administration proposes fresh lease terms for Golf Club and demands Rs 9.27 crore
December 21: Club sends representation to UT estate officer
December 22: Club sends representation to ministry of home affairs 2013
January 15: Club approaches HC
January 16 : Deadline for depositing `9.27 crore ends and HC directs to resolve issue amicably, restrains coercive action