India's oldest horse racing club, the Madras Race Club in Guindy, Chennai, faces a significant threat to its operations following a recent closure order from the Tamil Nadu Revenue Department.
This order came on Monday morning, sealing the club's gates and posting a lease termination notice by the district collector, which could have halted the club's activities for only the fourth time in its 247-year history.
The previous three instances of interruption occurred in the 1770s during Hyder Ali's invasion, in 1875, and during World War I.
The closure stemmed from a dispute over unpaid arrears of revised rent amounting to Rs 730.86 crore, a claim made by the government in 2017. On Monday, trainers and jockeys were abruptly asked to vacate the premises, with around 500 horses left locked inside the stables due to the lack of prior notice.
The Madras High Court later granted temporary relief, citing the government's action as illegal due to the absence of proper notice and due process. This reprieve is valid for just two days.
This situation follows a similar action taken by the Revenue Department two months ago against the Ooty Race Course in Udhagamandalam, which was also under the management of the Madras Race Club.
That closure was related to a substantial arrears claim of approximately Rs 822 crore dating back to 2001.
Advocate Vaibhav R Venkatesh, representing the club, argued that the current lease, which dates back to March 8, 1946, and is valid until April 1, 2045, should not be subject to revisions during its tenure, especially since an appeal regarding the rental arrears is still pending. The club's annual report confirms that lease rentals for the entire lease period had been fully paid.
In the fiscal year 2023, the Chennai racecourse hosted 192 races with 504 participating horses, while the Udhagamandalam racecourse had 99 races involving 374 horses.
The club's revenue grew by 23% from Rs 61.06 crore in FY22 to Rs 75.28 crore in FY23, although expenses also rose from Rs 60.88 crore to Rs 66.64 crore. The Chennai racing season typically runs from November through March.
Source: Business Standard, The Hindu
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