TN seeking Rs 750 crore from TNCA as lease rentals for Chepauk stadium

Chennai:

Spelling further trouble for under-siege ICC chief N Srinivasan, the Tamil Nadu government is reportedly seeking a whopping Rs 750 crore from the Tamil Nadu Cricket Association as lease rentals for the MA Chidambaram stadium at Chepauk following the expiry of lease late last month.

Though revenue officials at various levels either remained tight-lipped or maintained ignorance over the notice, it is learnt from official sources that the notice to be sent to TNCA to pay the dues lies with Chennai district collectorate.

A local official confirmed that the lease has expired on April 20, and that there has been some correspondence from TNCA over renewal of agreement. However,he could not confirm on how much pending dues the district collectorate has sought from TNCA.

It is learnt that as per the lease granted under Government Orders issued on April 7 and June 6, 1995, respectively, the initial lease rent was fixed at Rs 6,326.70 for Madras Cricket Club (MCC) allotment of share of one cawnies, 15 grounds and 1,104 square feet, and lease rent of Rs 43,673.30 for TNCA alloted share of 11 cawnies eight ground and 949 square feet. The lease was for 20 years.

It was later revised in accordance with revenue standing order 24 A which states that the lease rent is levied based on the land cost depending upon commercial and non commercial purpose. What has altered the calculation is the advent of  cash-rich Indian Premier League. The commercial value of the land was evaluated at  14 per cent on land cost since 2007 on account of Indian Premier League while the non-commercial valuation was done seven per cent of land cost.

As per the contract and taking into consideration Revenue Standing Order 24 A, the lease rental comes to Rs 750 crore.

It is learnt that TNCA leases out all the stands inclusive of MCC stands for IPL for only a few thousand of rupees per day, while the league is reaping profits in hundreds of crores in TV rights, in stadia advertising and entrance fee or ticket sales.

Incidentally, the Chepauk stadium is the home ground of Chennai Super Kings, the IPL team owned by Srinivasan. While his reign as the top honcho of Indian cricket has suffered a major set back in the recent past, Srinivasan continues to be the Ceaser of the State association. The association also abolished the two-term ceiling for presidents, enabling him to continue in the powerful post for an unlimited number of years.

Srinivasan-headed TNCA has been embroiled in a bitter row with government, as it did not take due permission for demolishing the stands in the stadium before reconstructing them.

As per clause of lease deed, TNCA should not use the land except for the purpose of construction of cricket stadium, and shall not erect buildings, fences or structures of a permanent or temporary character on the land without the prior sanction from the district collector.

Sources said that TNCA violated the clause of lease deed and built a club and rooms. The district collector refused to comment on the issue despite repeated requests.

Meanwhile, sources in the TNCA maintained that the association had not received any communication. "Till today, we didn't recieve any letter," said a senior association official.

The official confirmed that lease for the stadium expired recently. "We have applied for lease renewal and are expecting communication from authorities in this regard. Till now, there's no news of any letter asking us to pay," he said.