'Want rightful share in profit earned from renting ground' | mumbai | Hindustan Times
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'Want rightful share in profit earned from renting ground'

Suspecting the IES Education Society of not giving its share of profit earned from renting out a Dadar school ground for private functions, the municipal corporation has issued a show-cause notice to Raja Shivaji Vidyalaya.

mumbai Updated: Nov 19, 2010 01:42 IST
Sujit Mahamulkar

Suspecting the IES Education Society of not giving its share of profit earned from renting out a Dadar school ground for private functions, the municipal corporation has issued a show-cause notice to Raja Shivaji Vidyalaya.

The corporation has asked the education society to submit all receipts of rent collected when their ground was let out for private functions, such as weddings.

But Satish R Nayak, a trustee of the educational institute, denied that the BMC has sent them a notice. "The civic body has asked us to submit the audits and we are ready to show them."

The municipality has leased out 82 of its 4,176 plots to various educational institutes. In 1912, the BMC had allotted this Dadar plot to IES Education Society for a nominal rent of Re 1 per annum.

According to the policy framed by the corporation, educational institutes should give either Rs 40,000 per annum or 33% of the gross profit earned by rented out for private functions. However, they can rent out the hall or playground for non-educational activities only on public holidays and during vacations.

"If institutes are making huge profits from the leased plot, then the civic body should get its share of profit, either Rs 40,000 or 33% of gross profit, whichever is higher," said a senior official of the BMC's estate department on condition of anonymity because he is not authorised to talk to the media.

"We have pleaded the BMC to give us concessions in profit-sharing because we are not running schools to make profits like private clubs. The institute has to spend for cleanliness, electricity, furniture, water-sewerage charges and other maintenance. However, instead of 33%, the BMC should take 5% sharing of profit," Nayak added.

The education society, which runs 52 schools in the city, will soon make a representation about their demand to the municipal corporation.

"The civic body should have excluded education institutes from sharing of profit," said Manoj Kotak, chairman of the civic improvements committee.

Raja Shivaji Vidyalaya's alumni include MNS chief Raj Thackeray and former cricketer Sunil Gavaskar.