The renewal of lease of 140 acres of land given to the Mysore Race Club Limited which has been pending since 2006 has now been renewed upto 2016 by the Government of Karnataka at its Cabinet meeting held yesterday.

The Law and Parliamentary Affairs Minister S. Suresh Kumar briefing newsmen after the meeting said that the annual lease fee for the 140 acres of land had been raised from the present Rs. 2 lakh to 2% of the gross income per year.

"Having an annual turnover of about Rs.400 crore, the Mysore Race Club (MRC) earns about Rs. 80 to 85 lakhs apart from the betting tax and we are comfortable with the proposed hike of lease rent from Rs. 2 lakh to 2% of the gross income per year, which is about Rs. 30-35 lakh now," said MRC Secretary K.G. Ananthraj Urs.

He further said that since the renewal has been made retrospectively the Club will have to pay the arrears of the lease amount from 2006 to 2012 which amounts to Rs. 3,89,54,459, adding the Club had enough funds to pay the arrears.