Mr. Chaduranga Kanthraj Urs is a Member of the Managing Committee of Bangalore Turf Club, Steward of Madras Race Club and former Chairman of Mysore Race Club. 

In October 2024 Mr. Urs had flagged several failures of the Suresh Paladugu promoted enterprises and the damage caused to BTC and by default to all Turf Clubs across India. Below is reproduced the letter written by him to the Managing Committee of the Bangalore Turf Club. 

To

The Secretary,

Bangalore Turf Club,

BANGALORE.

Sir,

Subject: Concerns Regarding Telecasting Rights and Related Matters.

I am writing to formally express my serious disagreement with the prevailing majority opinion on the proposal to transfer telecasting rights and related matters to North Alley. This decision carries significant implications, and I believe my reservations must be thoroughly examined.

I request that my concerns be included in the agenda for the upcoming Managing Committee meeting. Furthermore, I kindly ask that this letter be circulated to all committee members well in advance to facilitate an informed and comprehensive discussion.

It is important to note that North Alley has yet to deliver the promised new software for our tote operations. Our previous system was capable of handling business exceeding Rs 10 crores in a single day, efficiently managing combined tote betting operations with Mysore Race Club and facilitating an all-India jackpot pool operation. The failure of North Alley to upgrade our software has severely hindered our progress, causing us to lose valuable time and money. Why has a company entrusted with such responsibilities failed to act on its commitments?

Moreover, there have been significant issues with the combined jackpot pool operations with Mysore. The inability of the system to generate dividends led to payment delays, often resolved on an ad hoc basis. Alarmingly, double dividends are declared and paid without addressing the underlying flaws in the system. Historically, there have been unclaimed amounts exceeding one crore of rupees, yet I have not observed any unclaimed tickets recently. How can this be? Is it truly a miraculous coincidence, or is there something more suspicious at play? It looks far from convincing.

North Alley had promised to implement facilities for conducting all-India tote operations, but it was nothing short of a fiasco. The all-India tote was announced with great fanfare, only to be abandoned without explanation. None of North Alley’s ventures have succeeded, including their much-touted HSPL League, which aimed to host match races for an international audience in Hyderabad. Every day, discrepancies are noticed where cash at counters is higher than what’s shown in the server. There is a cash shortage every day at the end of reconciliation, and it is being written off, resulting in a loss to the club. At the end of each day, cash at the windows is not recorded when a race is declared void or cancelled—it's a free-for-all. If a jackpot race becomes void or cancelled, the dividends are not system-generated and must be manually managed in the backend.

The cash reconciliation process also appears flawed. At the end of the day, cash at totes should be the sum of GST collected, club commission, unpaid tickets, TDS deducted, and check payments, less old payouts. This should tally with the cash in minus cash out at the windows. Instead, cash shortages are written off routinely, raising doubts about the integrity of the system.

Audit observations have highlighted significant cash shortages during the implementation of the new system. These shortages were attributed to incorrect dividend payments and double payments, all of which were identified as server system bugs during the statutory audit. Simply debiting the vendor’s account does not resolve the underlying problem. Additionally, the place pools are often invalid because the probable dividend displayed is less than the unit bet. This ongoing issue raises serious concerns about the reliability and integrity of the system, and further investigation and corrective action are imperative.

Additionally, North Alley has been sponsoring the Derby without any apparent conditions, which raises suspicions. What benefit do they derive from such substantial sponsorship when their commission and convenience fees are minimal? The club must exercise caution under these circumstances. Could it be that North Alley is using our feed to facilitate offshore illegal betting operations? The live webcast's security appears compromised, with lower prices or free links circulating among racegoers. There is absolutely no encryption of signals during transmission, which makes the system vulnerable. Income to the clubs is getting leaked as many sources are providing free coverage due to this vulnerability. Interestingly, Hyderabad Race Club, which introduced North Alley to clubs in India, does not accept any sponsorship from the company. Why is that? This discrepancy is far from convincing.

The previous sub-committee chairman had raised significant concerns about North Alley’s incompetence. Despite these concerns, North Alley has failed to adequately address the issues. Our club struggles to achieve satisfactory turnover due to a lack of promotion for the tote, yet North Alley still seeks to take over a venture that is currently underperforming. I demand clarity on these matters, as transparency is paramount.

The RWITC has entrusted telecasting rights to North Alley, but it is unclear what measures they have taken to enhance the quality of coverage through investment in modern technology or equipment. They have merely retained the same outdated personnel and equipment, resulting in subpar coverage. The clubs are entering contracts with North Alley with no visible improvement in services, based solely on their willingness to sponsor major races. We must scrutinize the background of an entity that is distributing funds without a corresponding business rationale.

All sponsorship funds must be secured in advance. Given our ongoing battle against illegal betting, and in light of the previous management's alleged collusion with such activities, the current management must be especially vigilant to avoid similar pitfalls.

Even if the club decides to proceed with North Alley, every aspect of this relationship must be transparent, with full disclosure to ensure no misconduct. North Alley should also be required to provide clarity regarding the sources of their funding, and their financial records must be scrutinized for transparency. We cannot afford to take unnecessary risks. Furthermore, it is imperative to investigate any potential connections between North Alley and the numerous offshore illegal betting sites. It is inconceivable that one entity could provide such funding when its financial records suggest that it does not even cover basic operational costs.

The BTC is entering a serious and precarious phase. This situation serves as a warning to all involved. We must engage only with companies willing to share all pertinent information to remain compliant with the law.

I trust that I have articulated my concerns clearly. Legal compliance must supersede sentiment and other considerations in our decision-making processes. All actions must withstand rigorous legal scrutiny.

With regards,

Chaduranga Kanthraj Urs

19/10/2024

Post Script:

Suresh Paladugu has managed to pull the wool over the eyes of the managements six Turf Clubs ! The disastrous handling of the HPSL promoted head-to-head racing conducted on the premises of the Hyderabad Race Club may have just blown the lid off Paladugu’s misadventures where several horses have been ill-treated, neglected for several months and died. 

The NHBSI [National Horse Breeding Society of India] has taken the lead in rehabilitating the remaining horses with the assistance of local animal lovers who have filed a PIL in the High Court of Madhya Pradesh principal seat at Jabalpur. 

In the interim, a considerable effort is being made by Paladugu and associates in Jabalpur to derail this effort by preventing feed already delivered to Jabalpur by Mr Yohan Shroff s/o Trainer Pesi Shroff a feed manufacturer of repute and medical aid provided by veterinarians and farriers deployed by NHBSI insisting that he and his associates are capable of providing all necessary feed and care and do not require the benevolence of anyone – too little too late don’t you think ?