DEO initiates take-over proceedings of New Poona Club over non-payment of ₹17cr dues
The club located at bungalow number 2 on Rajendrasinhji Road is known for hosting several social events
The Southern Command’s defence estates department has ordered the Defence Estates Officer (DEO) Pune to take over the New Club (Poona) Ltd in the cantonment area due to non-payment of ₹17 crores and lease expiry.
The club located at bungalow number 2 on Rajendrasinhji Road is known for hosting several social events.
The order issued by Saurav Ray, Director of Defence Estates, Southern Command, during December last week, stated, “Immediate action be initiated under Public Premise Eviction Act 1971 for taking over possession of the premises and recovery of damage charges.”
According to the defence estate office, the club management has been sitting over the property for the past five years despite the expiry of the lease without paying a single pie to the government and earning huge money from wedding venue membership.
As per the recent directions, the said office has been asked to take immediate eviction action, impose damage charges, file a First Information Report (FIR) and further seal the property.
Meanwhile, the DEO has swung into action and started PPE Act proceedings of eviction and served a notice to the club.
“The amount of ₹17 crores is due to be recovered from the club as a fine after the management failed to comply with directives issued by DEO from time to time,” said a senior official from defence estates, requesting anonymity.
When contacted, Ajit Singh Rajpal, president, New Club (Poona) Ltd, said, “We have approached a court in Pune and the hearing is scheduled on January 9.”
Rajpal also questioned the amount of ₹17 crores that DEO has arrived at while issuing the fine.
The DEO, Pune office which is located just opposite the new Poona Club had regularly sent communication to the club to pay the dues but no action was taken under the PPE Act.
Earlier last year, former members of the club in their complaint to the Ministry of Defence (MoD) had stated that the club was a bungalow property given on lease to the New Club (Poona).
“The lease expired six years ago and the club is illegally occupying the premises,” stated the former members in their communication to the Ministry of Defence.
The club spread over approximately one lakh square feet of land has a 10,000 square feet structure on it.
The club had asked for a renewal of the lease which was rejected by Southern Command headquarters and sub-area office.
The letter pointed out that the new club was running a restaurant, liquor bar and a marriage and party lawn illegally.
Though the army has objected to the renewal of the club lease, no action was being taken by the principal Director, Southern Command and the club management was still collecting ₹2,50,000 from new members despite the lease expiry.
The club website states that New Club was conceived in 1918. The birth of the club was in the form of an unregistered association of members somewhere in March 1918, on September 4, 1948. The New Club (Poona) Ltd was incorporated amidst celebrations of a new born India, the website states.
Pune Cantonment has approximately about 300 bungalows, a few schools and clubs like Turf Club, New Poona Club etc, both leased out by MoD to private persons or educational institutes mainly on long lease.
These bungalows are located on MG Road, East Street, Prince of Wales Road, Stavely Road and Cross Road.
