Madras High Court Chief Justice Sanjay V. Gangapurwala on Monday questioned the authority under which the Tamil Nadu government had revised the annual rent for 160.68 acres of government land leased out to Madras Race Club (MRC) at Guindy in Chennai in 1945 and demanded a whopping amount of ₹13,111.86 crore in rental arrears.
Presiding over the first Division Bench, along with Justice D. Bharatha Chakravarthy, the Chief Justice told Advocate-General R. Shunmugasundaram that the government land appeared to have been given to MRC by way of a contractual lease. Therefore, he wanted to know which clause of the contract empowers the government to revise the rent.
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