Maharashtra revises clubs' lease rates

Mumbai: The Maharashtra government, in a bid to collect more revenue, revised the lease rates of clubs and gymkhanas in Mumbai and suburban areas as per ready reckoner rates in a Cabinet meeting on Tuesday. The gymkhanas and clubs are being rented out at meagre rates dating back to the British Raj, which haven’t been revised as per the current market prices.

Also, the government has decided to claim 25 per cent of the profit of 45 days a year when the gymkhanas are given out on rent for social functions like wedding receptions. The clubs and gymkhanas are allowed to rent themselves out for social functions 45 days in a year.

“We have revised the lease rates of all gymkhanas and clubs that were paying a very little rent to the government. This will open an avenue for the government to get revenue. We have not calculated the exact amount of revenue that can be collected from this. But we are going to charge rent as per the ready reckoner rate,” revenue minister Chandrakant Patil said.

The government has divided the gymkhanas and clubs into three categories as per their area.

Explaining the formula whereby rent will be collected for each category, Mr Patil said, “Gymkhanas with an area of more than 20,000 square metres will come under category A; 10,000-20,000 square metres under category B and clubs below 10,000 square metres will fall under category C. Clubs in the A category will have to pay one per cent of 10 per cent of the market rate. Clubs in the B category will have to pay half per cent of 10 per cent of the market rate and clubs in the C category will have to pay one fourth per cent of 10 per cent of the market rate.”

There are a few gymkhanas that would pay us Rs 22 lakh to Rs 42 lakh annually after the revised rent, the minister added. “Also, we have asked them to pay 25 per cent of the profit of 45 days in a year when the clubs are allowed to be rented out for commercial use like marriages and social functions,” he added.

Categorical division of club rates

The government has divided the gymkhanas and clubs into three categories as per their area.

• Gymkhanas with an area of more than 20,000 square metres will come under category A; 10,000-20,000 square metres under category B; and clubs below 10,000 square metres will fall under category C.
• A category club: 1% of 10% of the market rate.
• B category club: 0.5% of 10% of the market rate.
• C category club: 0.25% of 10% of the market rate.