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Chandigarh Club disagrees on three clauses in lease deed

Built in 1958, the upscale club in Sector 1 is spread over 8.5 acres and has 8,000 members.

punjab Updated: Oct 09, 2018 14:25 IST
Hillary Victor
Hillary Victor
Hindustan Times, Chandigarh
Chandigarh Club,Chandigarh,Chandigarh administration
Built in 1958, the upscale club in Sector 1 has 8,000 members.(HT File )

Even as the Chandigarh Club management has agreed to the annual lease amount of Rs 92 lakh fixed by the Chandigarh administration, there are three clauses that remain the sticking point.

Built in 1958, the upscale club in Sector 1 is spread over 8.5 acres and has 8,000 members.

In a letter written to the estate officer, the club management stated the lease deed mentions that the Chandigarh administration will have the right to nominate three members, including the UT finance secretary, in the managing committee.

The club has asked Chandigarh to incorporate the names of two other nominated members — home secretary and deputy commissioner — by designation, as was the earlier practice.

The management also stated that the club is a company registered under Section 25 of the Companies Act 2013 and hence is governed under it bylaws, and dispute, if any, should be sorted by the National Company Law Tribunal, Chandigarh.

The management had also sought clarification from Chandigarh regarding rent arrears accumulated since July 2010. The club has the option of paying the arrears at one go or pay 30% upfront and the remaining 70% in monthly instalments over five years with 10% interest compounded annually.

The tussle

The tussle over lease between the UT and club is on for the past seven years. Currently, the club is paying Rs 1.73 lakh per month, which comes to Rs 20.76 lakh annually. The new amount (Rs 7.66 lakh/month) is a jump of four times. The club has around 8,000 members, so the lease comes to around Rs 100 per month for each member.

As per the lease deed, there will be an increase of 5% every year and the club will share 25% profit of functions, including marriages that have been allowed again after eight years, with the Chandigarh administration.

Mukesh Bassi, a former president of Chandigarh Club, said: “We have written to the Chandigarh administration and are hopeful that our conditions will be considered.” Sachin Rana, who is holding the charge of deputy commissioner, said: “I will look into it on Tuesday.”

First Published: Oct 09, 2018 14:25 IST