Bengaluru: A three-month long impasse between members of the Bangalore Turf Club and the state government has brought the prestigious institution to the verge of bankruptcy. And a shutdown.
BTC, declared the richest in the country as recently as January 2017, is now looking at imminent closure, perhaps as early as the first week of November, with the betting license being held ransom to 150 new memberships - a recent demand by the state government.
This is an all too familiar refrain - in 2015, Bangalore Club found itself in the line of fire, with the government deciding to make it mandatory for clubs to provide memberships to elected representatives. Opposition from the Bangalore Club, which functions under the Associated Persons Act, resulted in its liquor license being revoked, with the government using the CL-4 license as a means to bring it under the more binding Karnataka Societies Registration Act 1960.
Similarly, the demand for new memberships at the highly exclusive Bangalore Turf Club has been met with strong opposition from its close-knit community of members, with its betting license hanging in the balance. The club has only 350 members with new inductions made only in the event of the death of an existing member.
BTC, govt: Confrontation to compromise?
“It doesn't matter to us whether the show is run by the club or the government. We just want the show to run," declared Darius Byramji, a prominent trainer at the Bangalore Turf Club, on Wednesday morning.
The deadlock between the state government and the club's members shows no signs of abating, with BTC's betting licence hanging in the balance. The government’s demands need to be put to vote by the club members and passed by a three-fourths majority. An SGM was held on September 5 and sources close to the development say the proposal was strongly opposed, with the government allegedly taking the first step towards a compromise, allegedly saying that 50 memberships (25 this year and 25 next year) will suffice. However, Deccan Chronicle has no documents to back this. An Extra General Body Meeting has also been scheduled for the first week of November.
“The Turf Club is very insular – we have 350 members. Potential members are nominated and their entry is put to vote only when an existing member passes away. They don’t want their power diluted in any way, resulting in an ego clash between the government and committee,” explained a trainer.
The impasse began in April, when a local trainer's horse, Queen Latifah, was tested positive for Procaine, widely used as a therapeutic drug. A fight ensued between the government and the Turf Club and then chairman Harinder Shetty was removed from office. A CID inquiry was launched into the matter. “Today, the government says the delay is because of the inquiry, but that's not true," said a BTC Trainer. “The government says the ongoing CID inquiry is the reason for the delay but there are many inquiries happening against a lot of people. Companies and institutions are not shut down over this. We were told in so many words that the licence would be given to us as soon as the memberships were approved, that too by a currently serving Additional Chief Secretary,” said a well-placed source.
This isn’t the first time a demand of this nature has been made – Devaraj Urs, during his term as chief minister, increased the number of members from 250 to 350. In 2005, a proposal was put forth by the club itself, although the letter sent out in June says that the government at the time had not agreed to this.
The denial of a licence for off-course betting in September and October has resulted in tremendous losses, with the Club's expenditure averaging around Rs 1.6 crore each month and no money coming in. BTC pays roughly Rs 22,000 per horse per month, which includes food, salaries for sizes (grooms), medical expenses and other overheads. Trainers and owners alike have been forced to turn to other centres for help, which, understandably enough, has not been forthcoming. “In effect, we are being reduced to approaching other clubs with a begging bowl,” Byramji adds. The repercussions are already noticeable, with harried owners beginning to shift their horses to other centres.
“A few horses left yesterday (Tuesday),” says Lokanath Gowda, vice-president, Karnataka Trainers’ Association. “They have no choice. If BTC cannot bear the maintenance costs, it falls on the owners to do so. This is only the beginning.” Meanwhile, maintenance staff, many of whom work for daily wages, have their livelihoods at stake. The nearly 800 tote collectors who work at the Club held a protest "These are specialised jobs, where will these people go?" demanded S. Dominic, President, KTA. "We're looking at 5000 people whose source of income has been taken away. And there are also the horses – we need to pay for their oats and bran." The BTC employs some 800 tote collectors, who held a protest on October 11 demanding that representatives be sent to the CM so that their pleas are heard (they were denied permission by the police).
The winter season, peak racing time here in Bengaluru, begins on November 3, although chances of obtaining a licence in time remain bleak. "We are not here to muddy the waters any further. However, the well-being of the owners is at stake and that is my responsibility," said Venkatswamy, president, Karnataka Racehorse Owners’ Association.
Dismal odds for 800 horses, 2,000 workers
Trainers, owners and maintenance staff are caught in the midst of the deadlock. Their livelihoods are at stake if the betting license is not cleared for this season. If races are called off, Owners will be forced to pay the basic maintenance fee - Rs 22,000 per horse per month, the sum on which trainers, the horses and the other staff are entirely dependent. Without racing, neither the horses nor staff can be maintained.
Siddaramaiah jockeying for 50 memberships?
Sources say the CM has demanded 50 memberships to be put at his disposal, failing which the betting license of BTC will be revoked.
On June 6, 2017, BTC sent out an official response addressed to Chief Minister Siddaramaiah, which acknowledges the government's demand for "50 memberships as proposed and nominated by the government," and "100 memberships to the racing fraternity" (Racehorse Owners and Breeders) "In the interest of racing, especially our daily wage employees, we request you to kindly issue the Racing License immediately by this evening to enable us to make necessary arrangements for both off course and on course racing from June 7, 2017. The letter, which DC has in its possession, has been signed off by V Jagannath, Chairman of the Managing Committee.
"The Club offered the government 50 appointed memberships, which are given out based on designation, but this was turned down," said a source, strictly on condition of anonymity.
A meeting was called on September 5 and saw strong opposition from the members, say sources close to the development. The government, however, has allegedly made the first attempt at compromise, saying that 50 memberships (25 granted this year and the remainder next year) will suffice. An Extra General Body Meeting has been scheduled for the first week of November.
