MoD employs double standards on Land Scams

Gymkhana Club Chennai owes 33 crores as rent arrears on occupation of Military assets
The prestigious Gymkhana Club, situated close to the TN area headquarters, was an exclusive facility for military officers. Until 1920, its membership was restricted to garrison officers only and, even today, the club grounds belong to the armed services. This club is now hijacked by Civilians, Industrialists and Bureaucrats and Garrison Officers reduced to personae non gratae (literally non entities) without voting rights. This is height of bureaucratic arrogance subjected on the defence forces! The Area Commander is made a dummy Patron of the Club to hoodwink the Garrison Officer- Members serving and retired.

The then Madras Gymkhana Club was in occupation of 44.13 acres of Defence land in a prime part of the city from December 1977 to November 1986 on payment of annual rent of Rs 3,526. Though a formal lease agreement had not been entered into with the Club till then, the Ministry of Defence sanctioned, in October 1990, the continuance of the lease only in respect of 8.608 acres of land retrospectively from November 1986 onwards at the increased annual rent of Rs.8,608 based on agricultural rates. No lease agreement was concluded even thereafter. Gymkhana Club, Chennai in occupation of 44.13 acres has an outstanding dues Rs 33.10 crores, which has not been recovered over the years.

The DEO, Chennai, recovered rent from the Club up to November 1991. Thereafter, he stopped accepting rent from the Club on the ground that it had resorted to unauthorised construction on the leased land and had also made alterations to the building thereon without the prior permission of the lessor and in violation of the lease agreement.

Audit scrutiny disclosed the following:
The Club had constructed 14 air-conditioned guest rooms, in respect of which rent ranging from Rs 900 to Rs 1,950 per day was levied, a beauty parlour, a Chinese kitchen, ice-cream parlour, etc. It had also sub-let a portion of the land to a bank without the prior permission of the lessor.
Keeping in view the Club’s commercial activities, the DEO had assessed that rent amounting to Rs 33.10 crore was recoverable for the period from November 1991 to June 2001, based on only 2.5 per cent of the land value, as against 5 per cent adopted for determining the rent payable by another club in the same station, that was also involved in similar commercial activities. Government’s approval for revision of rent as proposed by the DEO had not been obtained even after the lapse of over 4 years as of March 2002. The Directorate General of Defence Estates informed Audit in September 2002 that the draft lease for the period from December 1977 onwards and rate at which damages were to be recovered from the Club had not yet been finalised by Ministry.
MINISTRY OF DEFENCE: Status of encroached lands
Exploitation of Defence Lands and listed scams

The MoD in connivance with Politicians have hijacked the prestigious and Exclusive Military Club. The present Committee Members of the club are spinning and reeking in crores of Rupees from membership fees from Industrialists, Bureaucrats and Civilians. The Bye- laws suitably framed by the Governing Body is a farce and passed by proxy to ensure the outstanding rentals are not paid to the Military. The Military Officers are made joker members divested of any honour or dignity in the club! When the Military is fighting for upholding Warrant of Precedence of Military ranks, here we see slew of dishonour bestowed on Military Officers and Retired Officers. Defence Minister should intervene and ensure that dignity of Military Officers are upheld at all forums.
Gymkhana Club Chennai- hijacked? Military made a scapegoat!

Sukhna Land Scam
Kolkata: Indian Army will begin trials in the Sukhna land scam case against Lt Gen PK Rath and Lt Gen Avadesh Prakash in Kolkata.

Lt Gen P Goel will be the presiding officer for the proceedings. The Army is going ahead with the proceedings even as a case is going on at the Armed Forces Tribunal where Lt Gen Prakash is seeking a stay. The tribunal has reserved its verdict in the land scam case.

Sources in Army Headquarters say the trials cannot be treated as contempt since the tribunal did not ask for stay of disciplinary proceedings.

Army's Eastern Command in Kolkata will carry out disciplinary proceedings which start on Wednesday and will begin with "hearing of the charge" - that is the charge will be read out to accused officers.

Lt Gen Prakash was the military secretary and responsible for the promotions and postings of army officers. He is among the army's most senior officers to face court martial on charges of corruption.
Top generals to be charged in Sukhna land scam