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ANOTHER SHOCK TREATMENT IN STORE FOR BTC

By Ikram Khan | 27 Sep 2016 | BANGALORE


Ikram Khan

After the Bangalore Turf Club (BTC) gained the Pune signal to conduct off-course betting at Bengaluru to the delight of the racing buffs at this centre, following the debate on the royalty issue at the meeting of Chairmans at Mumbai, BTC again finds itself back against the wall, the PWD department which has leased the land to BTC recommending to the government to increase the lease rent from the existing Rs 60 lakhs per year to two per cent of the 1800 crore turnover of the club on the totalizator pools. This in effect means the club will end up paying Rs 36 crores as the lease rent.

Senior steward Harindra Shetty who is set to become the chairman on Wednesday revealed that the club just cannot afford to pay the whopping increase in lease rent suggested by PWD.

'It is only a recommendation made by PWD to the government and we have not got any notice. Our commission from the totalizator pools is only four percent and if we are asked to pay two percent from that we will not be in a position to conduct racing,” said Harindra Shetty.   

The suggested increase in lease rent will be a big blow, the club already   fighting for survival after the service tax demand. The new lease levy is sure to hit the club hard, all racing activities including payment of stake money which is best at this centre. 

It is no secret that the government is designing many plans to increase its sources of revenue after much of the taxes it was collecting will go under the GST. The two per cent lease on turnover is expected to be levied on all the land leased to various sports associations which have substantial income. The Karnataka State Cricket Association (KSCA) and the golf clubs will all come under the ambit of this proposed levy on lease rent. 

The club aware that the proposed hike is huge, is confident that it will convince the government to allow the operations at BTC at the existing rent. Meanwhile on Monday, elections to the Managing Committee of the Club were held on Monday. Kenneth Pinto, Vivek Ubhaykar and Jagannath were elected as Stewards of the club. Fazal Ur Rahman and Chaduranga Kantharaj Urs were elected as Committee Members.