Gymkhanas: CAG pulls up Maharashtra govt for non-renewal of lease

They are the watering holes for the recreation of the city's elite. They typically charge a life membership of around 25 lakh rupees for ten years to life membership. They make people wait for years together to get a membership.

However, the Comptroller & Auditor General of India (CAG) has castigated the Maharashtra government for non-renewal of the lease agreements of the 10 gymkhanas for nearly three to 48 years. This has resulted in state revenue department's non realisation of lease rent of Rs 1.27 crore until 2017. The lease charges are a pittance compared to the membership fees that the clubs charge.

Some of the prominent clubs where the government has turned a blind eye towards the collection of lease dues are Bombay Gymkhana, P.J. Hindu Gymkhana, Parsee Gymkhana, Islam Gymkhana, and Woodhouse Gymkhana.

CAG in its scathing report for the year ending March 2018 has revealed that there are 16 gymkhanas of which 11 come under the jurisdiction of Mumbai district collector while five under the Mumbai suburban district collector. CAG observed that of the 11, the lease agreement in respect of nine gymkhanas had expired between December 1970 and December 2006. However, the agreements were not renewed so far.

''Thus, despite lapse of nearly 12 to 48 years, no tangible action was initiated by the collector to renew the lease agreements,'' CAG said.

Of the five gymkhanas, lease agreement of Khar gymkhana had expired on February 28. Despite a lapse of three years, the Mumbai suburban district collector did not take any action to renew the lease agreement.

CAG said the Superintendent, Mumbai City Survey and Land Records (City) in March 2018 had informed that the action would be initiated to renew the lease agreements as per rules. It was also intimated that another meeting of the gymkhana authorities would be called to discuss the relevant issues. However, the collector has not carried out annual scrutiny of leases of government land and submitted its report as binding on it.

Interestingly, CAG pointed out that matter was referred to the government on renewal of lease agreements in August 2018. However, the government's reply was awaited as of March 2019.