The State Cabinet on Tuesday cleared a policy linking the rent of land leased to gymkhanas during the British rule to Ready Reckoner (RR) rates.
The policy will help resolve the 13-year dispute between gymkhanas and the State government over the rent amount.
Three categories
According to the policy, the gymkhanas will be divided into three categories: (A) more than two hectares; (B) between one and two hectares; (C) less than one hectare. The rent would be 10% of RR rates. Yearly rent for the leased land would be (A): 1%; (B): 0.5%, and (C): 0.25%.
Revenue Minister Chandrakant Patil said, “Every year, the rent is proposed to be increased by 4%. During the previous regime, the rent was 15% of RR rates and many gymkhanas had termed it financially unviable and approached the court. Now, we have reduced the rates and I am sure the problem would be solved.”
In Mumbai, 18 gymkhanas were given land during the British era on lease for 99 years or less. The annual rent to be paid to the government could not be increased till the lease period ended in 1999, 2000 and 2001. “We have no intention to take land back from them. But we also have to think about increasing the State’s revenue,” he said
The grounds can be given for commercial (other than sports) activity for 45 days in a year and the State has staked claim to 25% of the chargeable rent. “We cannot claim money from the caterer or other contractor. But we can take a share from the land rent,” said the Minister.
The policy will be applicable from January 1, 2017. For earlier period, rent will be as per old rates and no interest will be charged. Leases will be renewed for the next 30 years.