Madras High Court Queries Government’s Authority on Rent Revision for Madras Race Club Land

The Madras High Court, led by Chief Justice Sanjay V. Gangapurwala, raised questions regarding the Tamil Nadu government’s authority to revise the annual rent for the 160.68 acres of government land leased to the Madras Race Club (MRC) in Chennai since 1945. The government has demanded a staggering ₹13,111.86 crore in rental arrears.

Chief Justice Gangapurwala sought clarification on the specific clause in the contractual lease that empowers the government to periodically revise the rent based on the market value of the property. The MRC, represented by senior counsel Satish Parasaran and advocate R. Parthasarathy, argued that the government lacks the unilateral right to revise rent without a provision in the registered lease deed.

The court has adjourned the hearing to January 23, maintaining the interim order of status quo until then. The legal dispute centers around the government’s revision of the lease amount for the land used as a racecourse, leased to MRC for 99 years until 2045.