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Supreme Court of India

KRISHAN LAL GERAversusSTATE OF HARYANA & ORS.

Citation
2011 INSC 432
Decided
4 July 2011
Disposal
Appeal(s) allowed

Holding

The Supreme Court held that the High Court erred in dismissing the PIL and that the lease and alleged irregularities must be examined, remanding the matter for proper adjudication on public interest grounds.

Summary

The petitioner filed a public interest litigation alleging that the District Sports Council of Faridabad had granted a 99‑year lease of a portion of Nahar Singh Stadium to the District Cricket Association Club (DCA Club) for a token rent of Re.1 per year, and that the club subsequently sub‑let the premises for commercial activities, violating the lease conditions. The High Court dismissed the petition, holding that no public interest was involved. The Supreme Court examined the allegations of irregularities, nepotism, and misuse of public sports infrastructure, emphasizing that state‑owned sports facilities must be used for sports and public benefit. It held that the High Court erred in refusing to exercise its jurisdiction to protect public interest. Consequently, the Supreme Court allowed the appeal, set aside the High Court order, and remanded the matter to the High Court for detailed consideration of the enumerated issues.

Issues considered

  • What is the basis for granting a lease of a large public sports property at a token rent without competitive bidding and ensuring exclusive sports use?
  • Why has no action been taken against the DCA Club for violating lease conditions prohibiting sub‑letting, alterations, and non‑sports use?
  • Are the various sports facilities within the stadium accessible to the public or restricted to club members, and under what conditions?
  • What amount, if any, has the DCA Club contributed towards maintenance of the stadium and its sports areas?
  • Can leases and sub‑leases of public sports facilities be granted without financial benefit to the owner and without open competitive bidding?
  • What steps are required to ensure the stadium is used solely for sports and related activities, providing primacy to sports and athletics?
  • Should the lease in favour of the DCA Club be cancelled, revoked, or terminated for breach of its terms?
  • What measures should be taken to prevent diversion of stadium and sports facilities to non‑sports, recreational, or private commercial activities?
  • Is there evidence of misuse or diversion of other state sports facilities, and are there policy guidelines to prevent such misuse?

Legislation cited

Subjects

public interest litigationsports stadium leasemisuse of public propertysub‑lettingnepotismstate responsibilitysports infrastructureadministrative law

Judgment

                          [2011] 7 S.C.R. 722


A                        KRISHAN LAL GERA
                                        v.
                    STATE OF HARYANA & ORS.
                   (Civil Appeal No. 4924 of 2011)
                              JULY 4, 2011
B
        [R.V. RAVEENDRAN AND H. L. GOKHALE, JJ.]

        Public Interest l,.itigation:

c      Writ petition before High Court - Challenging the lease
  deed granted in respect of the premises of a Stadium in
  favour of a recreation club for non-sports commercial
  activities - Dismissed by High Court holding that no public
  interest was involved in the writ petition - HELD: There have
0 been several irregularities by the District Administration
  (District Sports Council) in granting arbitrarily a largesse to
  DCA Club etc., in the form of a long term lease at an annual
  rent of Rs.11- for use of a Sports Stadium, for non-sports
  commercial activities - The matter required consideration -
E The High Court failed to exercise its jurisdiction - Whenever
  nepotism, favouritism and unwarranted government largesse
  to private interests, threaten to frustrate schemes for public
  benefit, it is the duty of High Courts to strike at such action -
  The questions enumerated in the judgment are required to
  be addressed by the High Court - PIL remanded to High
F Court to dispose of the matter in accordance with law with
  reference to the issues enumerated in the judgment and the
  issues that may arise during hearing by the High Court.
        Sports:
G
         Sports complex/Sports stadium - Use of premises -
    HELD: No part of the stadia or sports grounds can be carved
    out for non-sport or commercial activities to be run by
    recreational clubs or by private entrepreneurs - A sports
H                                  722
   KRISHAN LAL GERA v. STATE OF HARYANA &                  723
                   ORS.

complex/sports stadium cannot be converted into a                A
recreation club - Creating a sports ground, encouraging
sports is a part of human resource development which is the
function of the State.

       Sports Stadia - Maintenance and optimum use of - 8
  HELD: The country requires world class infrastructure to train
  potential athletes and sportspersons - It is not sufficient if
  infrastructure is created, but such infrastructure and facilities
  should be properly maintained and optimum utilization of the
  infrastructure should be ensured - Persons experienced in C
  sports administration and sportspersons should manage the
  stadia and not the Managing Committees of recreational
' clubs - Development of sports infrastructure means to ensure
  continuous and effective use of those facilities and adequate
  maintenance and upkeep - There should be a
  comprehensive plan for optimum use of the facilities already D
  available so that they are accessible to sportspersons.

    A writ petition was filed before the High Court as a
public interest litigation stating that the District Sports
Council, Faridabad, by lease deed dated 26.8.1998,               E
granted a lease of the Kapil Pavilion i.e. South Pavilion
Building of Nahar Singh Stadium at Faridabad, measuring
784 sq.yds. as well as the open area in front of the South
Pavilion measuring 5713 sq. yds. comprising the cricket
practice pitches, Badminton Courts, Lawn Tennis Courts,          F
Swimming Pool and a large vacant ground, in all 6497
sq.yds in favour of respondent no. 4, the District Cricket
Association Club (DCA Club), for a period of 99 years on
a token annual rent of Re. 11-; that on 15.12.2003, the DCA
Club, granted a licence in regard to the lawn area in front      G
of the Kapil Pavilion to 'Modern Tent House' on a
monthly rent of Rs.15,0001· with a ten percent increase
every two years. The said agreement stated that the
"period of hiring" was six years, and the purpose was to
host 'parties'. It was alleged by the petitioner, inter a/ia,    H
   724      SUPREME COURT REPORTS             [2011] 7 S.C.R.

A that instead of using the leased premises which was part
  of the stadium complex, for sports and sports related
  activities, it was being used for illegal activities; that
  though clause 10 of the lease deed in favour of the DCA
  Club barred subletting or transfer of the premises, the
s premises had been sub-let to the Modern Tent House
  under the guise of a licence; that the licensee, the Modern
  Tent House, constructed several permanent structures
  including pandals and rooms in violation of the lease
  terms; that Modern Tent House was permitted to use the
c entire open area of 5713 sq. yds, instead of only the lawn
  area to the South of the Pavilion; that the swimming pool
  had been given on a fifteen year lease to M-n-M Pool and
  Spa Services at a throwaway rent. The appellant,
  therefore, prayed for directions to respondents 1 to 3,
  namely, the State of Haryana, the Deputy Commissioner,
0
  Faridabad and Faridabad Municipal Corporation to: (a)
  cancel the sub-lease/licence of Kapil Pavilion and the
  open area in front of it under the Deed dated 15.12.2003
  and also cancel the sub-lease/licence of the swimming
  pool under contract dated 22.5.2004; (b) to stop the usage
E of premises for purposes of private functions and illegal
  activities etc.; (c) to dissolve the DCA Club (fourth
  respondent) and take action against its members and
  recover the loss of revenue from them. The Division
  Bench of the High Court dismissed the petition stating
F that no public interest was involved in the petition.
  Aggrieved, the writ petitioner filed the appeal.

         Allowing the appeal, the Court
      HELD: 1.1. Although, this Court, on 30.11.2009 had
G restrained the respondents from further leasing the
  premises, yet, the DCA Club had, in clear violation of the
  said order, entered into an MOU dated 30.6.2010 with
  Hotel Raj Mahal Regency and entrusted the Kapil
  Pavillion and the open area in front of it for five years to
H
  KRISHAN LAL GERA v. STATE OF HARYANA &             725
                  ORS.

Hotel Rajmahal Regency, "for managing the Bar and           A
Restaurant and provide tentage, and holding parties/
functions on the lawns and manage the other activities
like Gymnasium, Billiards and Tennis etc". Hotel Rajmahal
Regency is required to pay to DCA Club Rs.35,000/· plus
taxes per every "big function" using the party lawn apart   B
from Rs.25000/· towards average monthly electricity
charges. [para 10-11] [734-F-H; 735-A·D]

     1.2. The instant case indicates the common malaise
found in various parts of the country in regard to sports C
stadia and sports facilities - firstly, inadequate and
inappropriate use; secondly, poor maintenance; thirdly,
lack of access to students, public, athletes and sports
persons. A huge tract of valuable land belonging to the
local authority was earmarked exclusively for sports
activities by constructing a stadium. The pavilions were D
intended to be used for sports related activities.
Unfortunately, the District Sports Council instead of
encouraging sports and developing the entire area into
a thriving and vibrant stadium for various sports and
sportsmen, has pushed sports activities into the E
background by converting the pavilion into a club with a
bar room, restaurant, card room and developing the open
space meant for sports activities into a party lawn for
functions/marriages. The stadium is meant for improving
and developing sports and sports persons. But slowly F
and steadily these are ignored by stating that the funds
are not available for maintenance or people are not
coming to use the facilities. In no time, an exclusive
recreational club is established for those in power, those
who have access to power and those who can afford to G
pay hefty sums to access the facilities by way of
membership. Thus valuable state resources meant for.the
general public, for the poor and the needy who require
the facilities to improve themselves, are denied access
                                                            H
    726     SUPREME COURT REPORTS              [2011) 7 S.C.R.


A and the entire facility becomes the domain of a chosen
  few. [para 14-15] [736-D-H; 737-F-H; 738-A-B]
         1.3. Creating a sports ground, encouraging sports is
    a part of human resource development which is the
9   function of the State. No part of the stadia or sports
    grounds can be carved out for non-sport or commercial
    activities to be run by recreational club or by private
    entrepreneurs. A sports complex/sports stadium
    belonging to the government with special infrastructure
    created for sports, athletes and sportspersons, cannot
C   be converted into a recreation club. The State and its
    instrumentalities should wake up to their responsibilities
    in regard to the citizens and youth of this country, in
    regard to human resources development. The country
    requires world class infrastructure to train potential
D   athletes and sportspersons. It is not sufficient if
    infrastructure is created, but such infrastructure and
    facilities should be properly maintained and optimum
    utilization of the infrastructure should be ensured.
    Persons experienced in sports administration and
E   sportspersons should manage the stadia and not the
    Managing Committee of the recreational clubs. [para 15-
    17] [738-C-H; 739-A-G-H; 740-A-C]

      1.4. Development of sports infrastructure means to
F ensure continuous and effective use of the facilities and
  provide adequate maintenance and upkeep. There
  should be a comprehensive plan for optimum utilization
  of the facilities already available so that they are
  accessible to sportspersons. The government cannot
G allow sports facilities and sports bodies to be hijacked
  by persons totally unconnected with sports for private
  gain or for benefit of an exclusive few. State of Haryana
  prides itself in giving importance to sports. The Court
  hopes that the state administration realizes the needs of
H the society and the need for improving sports as an
  integral part of human resources development.
    KRISHAN LAL GERA v. STATE OF HARYANA &                  727
                    ORS.
 Participation in sports and sport competitions builds              A
 patriotism and national pride, apart from other benefits.
 [para 19) [741-C-F]

      2.1. If a chunk of a Government stadium, being prime
 land in the heart of the city meant for developing sports          8
 and athletics is misused or illegally allowed to go into
 private hands, it cannot be said that no public interest is
 involved. While the High Courts are not expected to take
 policy decisions in regard to sports administration and
 infrastructure, nor are they expected to supervise the             C
 running of the sports stadia, they are bound to interfere
 and protect public interest when blatant misuse is
 brought to their notice. The High Court should direct the
 authorities concerned to perform their duties and take
 action in regard to the irregularities, omissions and
 negligence, so that the interest of the public, particularly,      D
 human resource development, could be protected.
 Whenever nepotism, favouritism and unwarranted
 government largesse to private interests, threaten to
 frustrate schemes for public benefit, it is the duty of High
 Courts to strike at such action. In the instant case, there        E
 have been several irregularities by the District
 Administration (District Sports Council) in granting
 arbitrarily a largesse to DCA Club etc., in the form of a
  long term lease at an annual rent of Rs.1/-, and use of a
 Sports Stadium, for non-sports commercial activities. The          F
 matter required consideration. Unfortunately, the High
 Court chose to dismiss the petition in fimine and thereby
 failed to exercise its jurisdiction. [para ·13, 15 and 19) [736-
  B-C; 737-F; 740-G-H; 741-A-B]

      2.2. The.following questions require to be addressed          G
 in regard to the instant case:

. Specific Issues

       (i)   What is the basis for giving a virtual largesse        H
    728          SUPREME COURT REPORTS            [2011] 7 S.C.R.


A                 of a huge property by the District Sports
                  Council, Faridabad, to DCA Club at a paltry
                  rent of Re. 1/- per annum, without inviting
                  tenders, without ensuring exclusive use for
                  sports?
B
          (ii)    When the lease deed categorically states that
                  the lessee shall not carry out any additions
                  and alterations to the building and shall not
                  sublet or transfer its rights and the building
                  shall not be used for any purpose other than
c                 the purpose for which the lease was granted,
                  why action has not been taken against DCA
                  Club for the violations of all these conditions,
                  as admittedly DCA Club has granted licences
                  which virtually amounts to sub-leases in
D                 regard to the leased premises, allowed
                  constructions to be put up and allowed
                  premises to be used for purposes other than
                  the purpose for which it was leased.

E         (iii)   Whether the entire stadium, in particular the
                  Cricket Stadium, football ground, basketball
                  ground, athletic tracks, swimming pool,
                  badminton and lawn tennis courts are
                  accessible to the public or only to the
F                 members of the club and if so on what
                  conditions?

          (iv)    What is the amount by the DCA Club in
                  allegedly assisting in maintaining the stadia,
                  athletic tracks and other sports areas?
G
          (v)     Whether leases and sub-leases can be granted
                  without any financial benefit to the owner of
                  the stadium complex and without any open
                  competitive bidding?
H
   KRISHAN LAL GERA v. STATE OF HARYANA &                 729
                    ORS.

     (vi)     What steps are taken to ensure that the entire     A
              stadium is used only for sports and sports
              related activities with access to all persons
              interested in sports by giving primacy to the
              sports in the stadium?.
                                                                 B
     (vii) Whether ·the lea$e in favour of DCA Club
           requires to be cancelled/revoked/terminated
           for breaches?

     General Issues
                                                                 c
     (viii) What steps are to be taken to ensure that there
            is no diversion of the stadia and sports
            facilities for non sports activities, recreational
            activities and private commercial activities.
     (ix)     Whether there is any misuse or diversion to        D
              unauthorized used, in respect of other stadia
              and sports facilities/complexes in the state and
              whether there is any policy guidelines to
              prevent their misuse or diversion to unrelated
              use?                                               E
    As the High Court has not considered these aspects
and the matter requires monitoring and appropriate
directions, it is necessary to remand the matter to the
High Court. Therefore, the order of the High Court is set        F
aside, and the PIL is remanded to it with a request to deal
with and dispose of the matter in accordance with law,
in particular with reference to the issues enumerated in
the previous para and other issues that 'may arise during
hearing by the High Court. [para 21-22) [745-D-H; 746-A-         G
H; 747-A-B]
    Jayalalitha v. Government of Tamil Nadu 1999 (1) SCC
53 - cited.
                                                                 H
    730       SUPREME COURT REPORTS              [2011] 7 S.C.R.


A                        Case Law Reference:
          1999 (1) sec 53           cited               para 9

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    4924 of 2011.
B
         From the Judgment & Order dated 29.1.2007 of the High
    Court of Punjab & Haryana at Chandigarh in C.W.P. No. 14181
    of 2006.

      Neeraj Kumar Jain, Dinesh Kumar Garg, Abhishek Garg,
C Dhananjay Garg, Ritu Puri, B.S. Billowrig, Umang Shankar,
  Sanjay Singh, Ugra Shankar Prasad, T.V. George, Manjit
  Singh, Dr. S.K. Verma for the appearing parties.

          The Judgment of the Court was delivered by
D
          R.V.RAVEENDRAN, J. 1.· Leave granted.

          2. Nahar Singh Stadium at Faridabad is stated to be
    situated in a land measuring about 38 acres belonging to
    Faridabad Municipal Corporation. The stadium was
E   constructed and was maintained by the District Administration
    through the District Sports Council. It consisted of a Cricket
    Stadium with North and South Pavilions, a football ground, a
    basket ball ground and an athletics ground and large vacant
    grounds. The cricket stadium has been the venue for some
F   occasional Ranji Trophy matches, Dileep Trophy and Irani
    Trophy matches and occasional One Day Internationals (ODls.).
    It is stated that the District Sports Council and the District
    Cricket Association which occasionally used the Cricket
    Stadium, found it difficult to maintain the stadium complex on
G   account of the infrequent use of the stadium facilities and
    frequent vandalism by miscreants and anti social elements. As ·
    a result'the dressing rooms and toilets required frequent
    renovation before every match. Electric fixtures and sanitary
    fittings which were being frequently stolen had to be replaced
H   repeatedly.
I'




        KRISHAN LAL GERA v. STATE OF HARYANA &                    731
               ORS. [R.V. RAVEENDRAN, J.]

           3. In this background, the District Cricket Association        A
     ('DCA' for short) on 31.12.1997 decided to form a club that
     could generate income for the District Cricket Association, so
     that the Association could have the funds to maintain the cricket
     stadium including the cricket ground, main pitches, practice
     pitches, dressing rooms and the Hostel of Haryana Cricket            B
     Nursery, in a proper manner. It was decided that the existing
     members of the District Cricket Association would be its
     founding members and the club would cater to the requirements
     of the citizens of NIT area of Faridabad, by providing facilities
     like lawn tennis, badminton, table tennis, billiards, swimming       c
     pool, gymnasium and a card-room, T.V. lounge and a Bar and
     Restaurant. In pursuance of it, the DCA Club was registered
     as a society under the Societies Registration Act, 1860 on
     29.4.1998 with the Registrar of Firms and Societies, Haryana.
     The main aims and objects of the DCA Club under its
                                                                          0
     Memorandum of Association were inter alia to (i) promote
     sports, cultural, literary and recreational activities for its
     members and foster the spirit of brotherhood and fraternity; (ii)
     undertake activities relating to promotion of sports in all fields
     with special emphasis on cricket, (iii) encourage and help
     upcoming sports persons of Haryana. It provided for Chief            E
     Patrons/several Patrons and three categories of members (i)
     Honorary Members (eminent personalities), (ii) Foundation
     Members (with voting rights), and (iii) Associate Members
     (without voting rights). The President of the DCA was to be the
     President and the Senior Vice Presidents and Vice Presidents         F
     of DCA were to be the Senior Vice Presidents and Vice-
     Presidents of the DCA Club.

           4. On the request of DCA club (fourth respondent), the
     District Sports Council, Faridabad, under lease deed dated           G
     26.8.1998 granted a lease of the Kapil Pavilion (that is South
     Pavilion Building measuring 784 sq.yds. as well as the open
     area in front of the South Pavilion measuring 5713 sq. yds.) in
     all 6497 sq.yds, for a period of 99 years, in favour of DCA Club
     on a token annual rent of Re. one per year. The lease was for        H
    732       SUPREME COURT REPORTS                   [2011] 7 S.C.R.


A   the purpose of establishing, running and maintaining a club and
    related activities which were lawfully permissible. The lease
    deed cast the following obligations upon the lessee :

          (i) The lessee shall not carry out any additions and
          alterations in the building except construction of play fields
8
          in the open area and any portion covered under the
          stadium stairs opening in the open area earmarked in the
          Schedule without the permission of the President, District
          Sports Council in writing. (vide clause 6)

c          (ii) The lessee shall not sublet or transfer his rights under
          this lease. (vide clause 10)

          (iii) The building and the land attached to the building shall
          not be used for any other purpose except the purpose for
D         which lease has been made and for no other purpose.
          (vide clause 11)

         The lease deed contains certain inconsistent clauses. The
    preamble states that "the lessor has agreed to grant the lessee
    a temporary use and occupation of the said building for
E   establishing, running and maintaining a club". Clause (1) stated
    that lease was "for a period of ninety nine years". Clause (4)
    stated that the "lease is irrevocable unless it is terminated by
    the lessor on breach of the conditions or term of the lease by
    the lessee".
F
         5. It is not in dispute that the 'open area' of 5713 sq.yds.
    (situated to the South and East of the South Pavilion) leased
    to DCA club comprises the cricket practice pitches, Badminton
    Courts, Lawn Tennis Courts, Swimming Pool (situated to the
G   East of the Pavilion) and a large vacant ground (situated to the
    South of the Pavilion).

         6. Though the object of establishing the DCA club was to
    run a club and provide funds to DCA to maintain the cricket
    stadium, contrary to the terms of the lease, on 15.12.2003, the
H
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 733
            [R.V. RAVEENDRAN, J.]
DCA Club granted a licence in regard to the lawn area (that is        A
the open space to the South of the Pavilion without specifying
the exact extent) in front of the Kapil Pavilion to 'Modern Tent
House' on a monthly rent of Rs.15,000 with a ten percent
increase every two years. The said agreement stated that the
"period of hiring" was six years, and the purpose was to host         B
'parties'. Though the agreement purports to be a licence, the
terms make it clear that it is in fact a lease.

      7. The appellant herein filed a public interest litigation in
the year 2006 before the Punjab & Haryana High Court, alleging        C
that instead of using the leased premises which is part of the
stadium complex, for sports and sports related activities, it was
being used for illegal activities; that the club had become an
adda (den) of gamblers; that though clause 10 of the lease deed
in favour of the club barred subletting or transfer of the premises
in violation thereof, the premises had been sub-let to the            D
Modern Tent House under the guise of a licence; that the
licensee Modern Tent House in violation of the lease terms
constructed several permanent structures including pandals and
rooms (for godown, generator etc.) and the entire area is in bad
shape because of the lack of maintenance; and that Modern             E
Tent House was permitted to use the entire open area of 5713
sq.yds, instead of only the lawn area to the South of the
Pavilion. It was next alleged that the swimming pool constructed
by the DCA Club had been given on a fifteen year lease to M-
n-M Pool and Spa Services at a throwaway rent on 22.5.2004,           F
implying that other amounts were received by the committee
members, which was not being accounted. It was alleged that
the funds were misused by the corrupt members of the
Executive Committee who were least interested in fulfilling the
objects of the' club. The appellant therefore prayed for a            G
direction to respondents 1 to 3 (State of Haryana, Deputy
Commissioner, Faridabad and Faridabad Municipal
Corporation) to (a) cancel the sub-lease/licence of Kapil
Pavilion and the open area in front of it under the Deed dated
15.12.2003 and also cancel the sub-lease/licence of the               H
    734      SUPREME COURT REPORTS                  [2011} 7 S.C.R.


A   swimming pool under contract dated 22.5.2004; (b) to stop the
    usage of premises for purposes of private functions, gambling
    and illegal activities etc.; (c) to dissolve the DCA Club (fourth
    respondent) and take action against its members and recover
    the loss of revenue from them and other consequential reliefs.
B
       8. The petition was resisted by respondents on several
  grounds. They denied the allegation that any illegal activities
  were carried on in the premises. It was pointed out that the
  reliefs have been sought in regard to the portions given to
  Modern Tent House and M-n-M Pool and Spa Services without
C impleading them as parties; and that the pool had been given
  to said M-n-M Pool and Spa Services on build, operate and
  transfer contract.

       9. A Division Bench of the High Court which heard the
D petition, dismissed the petition by a single line order on
  29.1.2007 : "No public interest is involved in this petition.
  Dismissed." Aggrieved thereby, the appellant has filed this
  appeal. Relying upon the decision in Jayalalitha v. Government
  of Tamil Nadu [1999 (1) SCC 53], the appellant contends that
E a public interest litigation was in fact maintainable in the event
  of a stadium intended for public use, meant for sports activities
  was misused or not properly maintained.

         10. This Court on 30.11.2009 had restrained the
  respondents from further leasing the premises. On 15.12.2009
F this Court directed the respondents to file a statement in respect
  of the activities of the club. In response to the said direction
  the Executive President of the DCA club has filed an affidavit
  dated 21.9.2010 on behalf of respondents 1 and 2. It is stated
  therein that Nahar Singh Stadium and adjoining areas are
G being used for the following sports activities : (a) cricket; (b)
  foot ball; (c) lawn tennis; (d) badminton; (e) table tennis;(f)
  billiards; (g) swimming; (h) athletics/Gymnasium. It is stated that
  the premises has a bar room, restaurant, card room and TV
  lounge and that about one acre of land which is outside the
H
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 735
            [R.V. RAVEENDRAN, J.]
stadium, which had been earlier given to Modern Tent House,          A
is being co-managed with Hotel Raj Mahal Regency.

       11.After the hearing was concluded, the fourth respondent
  (DCA Club) has filed written submissions disclosing that the
  DCA Club had entered into an MOU dated 30.6.2010 with Hotel B
  Raj Mahal Regency for co-management of the Club. The copy
  of the Memorandum 'of Understanding dated 30.6.2010
  produced as an annexure to the written submissions disclosed
  that DCA Club has entrusted the Kapil Pavillion and the open
  area in front of it for five years to Hotel Rajmahal Regency, "for C
  managing the Bar and Restaurant and provide tentage, and
  holding parties/functions on the lawns and manage the other
  activities like Gymnasium, Billiards and Tennis etc". Hotel
  Rajmahal Regency is required to pay to DCA Club Rs.35,000/
  - plus taxes per every "big function" using the party lawn apart
  from Rs.25000/- towards average monthly electricity charges. · D
  The licensee was required to invest Rs.25 lakhs (non-
' refundable) for renovation, air-conditioning, furniture and fixtures
  and interiors to improve the ambience of the club. This
  arrangement entered by DCA Club on 30.6.2010 is in clear
  violation of the interim order of this Court dated 30.11.2009. E
  Be that as it may.

       12. The written submissions also allege that the DCA Club
  has been acting as a "support base" for cricket and other sports
  activities by maintaining the day and night practice pitches       F
  outside the stadium, maintaining the Lawn Tennis Courts,
  Badminton Courts, swimming pool and gymnasium, helping in
  maintaining the entire cricket stadium including the main
  ground, practice pitches, main pitches, dressing room, the North
  Block which houses the hostel of Haryana Cricket Nurs,:ry and      G
  providing regular security to the whole stadium area. It was
  submitted that the DCA Club is in lawful possession of the
  premises (measuring 6497 sq.yds., that is open area of 5713
. sq.yds. and pavilion area of 784 sq.yds.) and working towards
  sports development, cultural development fraternity, talent        H
       736     SUPREME COURT REPORTS                  [2011] 7 S.C.R.


A promotion within the framework of statutory requirements and
  using the club as well as the open land allotted to it for the
  purpose of activities relating to sports and games.

       13. We have referred to the facts to demonstrate that there
  have been several irregularities by the District Administration
8
  (District Sports Council) in granting arbitrarily a largesse to
  DCA club etc., in the form of a long term lease at an annual
  rent of Rs.1/-, and use of a Sports Stadium, for non-sports
  commercial activities. The matter required consideration.
  Unfortunately, the High Court chose to dismiss the petition in
C limine and thereby failed to exercise its jurisdiction.

             14. What we find in this case is the common malaise found
       in various parts of the country in regard to sports stadia and
       sports facilities. Firstly, inadequate and inappropriate use.
D      Secondly, poor maintenance. Thirdly, lack of access to
       students, public, athletes and sports persons. A huge tract of
       valuable land belonging to the local authority was earmarked
       exclusively for sports activities by constructing a stadium. The
       pavilions were intended to be used for sports related activities.
E      Unfortunately, the District Sports Council instead of encouraging
       sports and developing the entire area into a thriving and vibrant
       stadium for various sports and sportsmen, has pushed sports
       activities into the background by converting the pavilion into a
       club with a bar room, restaurant, card room and developing the
F      open space meant for sports activities into a party lawn for
       functions/marriages. This is done by granting a 99 year lease
       of a prime area of the stadium measuring 6497 sq.yds. (that
       is, the entire south pavilion building measuring 784 sq.yds. and
       the open area of about 1.25 acres) for a paltry rent of Re.1 per
       annum. The stadium and infrastructure therein are meant for the
G      benefit of the people. Sports promote health, spirit of
       competition, and social integration. The sports facilities in the
       Stadium are meant to be used by residents and sports persons
       of the city/town and surrounding areas. The prime area of the
       stadium cannot be taken over by persons in power and the rich
1::1
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 737
            [R.V. RAVEENDRAN, J.]

 and mighty for an elitist recreational club by paying a token           A
  annual rent of Re.1. The affidavit shows that in the leased area
  sports activities are not encouraged and the entire leased area
  is used for commercial activities: bar, restaurant, party hall and
  party lawn. This Court sought the particulars and details to know
  the activities conducted. The affidavit in reply dated 21.9.2010       B
  filed by DCA Club vaguely states that it is being used for the
  activities of cricket, lawn tennis, badminton, billiards, swimming
  pool, gymnasium, football, athletics. This is obviously false as
  the football ground and athletics ground are outside the area
  leased to the DCA Club. The cricket stadium is also outside            c
  the area leased to DCA Club. It is not disclosed who is
  maintaining the cricket stadium, football field, basket ball field,
  athletic tracks etc., and whether cricket, football, basketball are
  regularly played, by whom and at what level; whether the
  infrastructure and facilities for playing these games are              D
. available; who is permitted to play tennis, badminton; who is
  permitted to use the swimming pool; and who is running the
  gymnasium and what kind of equipment is available and who
  are entitled to use it. The District Administration {District Sports
 Council headed by the Dy. Commissioner) and the State have              E
  not bothered to answer any of these issues even before us.

     15. Whenever nepotism, favoritism and unwarranted
government largesse to private interests, threaten to frustrate
schemes for public benefit, it is the duty of High Courts to strike
at such action. The stadium is meant for improving and F
developing sports and sports persons. But slowly and steadily
these are ignored by stating that the funds are not available for
maintenance or people are not coming to use the facilities. The
standard refrain is that a part of the stadia or sports fadlity can
be used for non-sports activities generating funds for the G
upkeep of the stadium. In no time, an exclusive recreational club
is established for those in power, those who have access to
power and those who can afford to pay hefty sums to access
the facilities by way of membership. Thus valuable state
resources meant for the general public, for the poor and the .. l:L
    738      SUPREME COURT REPORTS                  [2011] 7 S.C.R.


A needy who require the facilities to improve themselves, are
  denied access and the entire facility becomes the domain of
  a chosen few. What started as a multipurpose stadium for the
  benefit of citizens become partly a private recreational club and
  partly a neglected unused stadium. What started as a club then
B goes into private hands for commercial exploitation for a hotel
  or for conducting marriages and other functions. The only
  "sports" activity regularly held is in the card room. Unfortunately,
  all this is done under the nose of the District Administration, in
  a centrally located property belonging to the Municipal
c Corporation and controlled by District Sports Council. Creating
  a sports ground, encouraging sports is a part of human resource
  development which is the function of the State. No part of the
  stadia or sports grounds can be carved out for non-sport or
  commercial activities to be run by recreational club or by private
  entrepreneurs. Recreational clubs are not sports clubs. Nothing
0
  prevents the Municipal Corporation or District Administration
  from running these sports facilities either directly or through
  registered associations without any restriction as to
  membership. After all human resource development and the
  health and welfare of the citizens is one of the main functions
E and responsibility of governments. We fail to understand why
  the Government/ Municipal Corporation failed to allot funds and
  maintain the sports facilities; why sports facilities created at
  huge costs are not used or made available as sports grounds
  to the colleges and schools; why a large chunk of the stadium
F complex (measuring 6497 sq.yards) including a huge building
  meant to be a sports pavilion is let out for 99 years on a rent
  of Re.1/- per year, without inviting tenders; and why were the
  sports facilities permitted to be converted into a club house,
  marriage hall and party lawn for private functions. The State and
G its instrumentalities should wake up to their responsibilities in
  regard to the citizens and youth of this country, in regard to
  human resources development.

      16. !he country requires world class infrastructure to train
H potential athletes and sportspersons. It is not sufficient if
   KRISHAN LAL GERA v. STATE OF HARYANA &                      739
          ORS. [R.V. RAVEENDRAN, J.]

infrastructure is created, but such infrastructure and facilities      A
should be properly maintained and optimum utilization of the
infrastructure should be ensured. The Parliamentary Standing
Committee on Human Resources Development has noted thus
in the 185th Report on Promotion of Sports in India (laid on the
Table of Lok Sabha on 30.11.2006):                                     B

     "Under-utilisation of infrastructure

     5.12. Optimum utilisation of our existing sports
     infrastructure has also been one of areas of concern before
     the Committee. We have erected huge stadia and other              C
     sports infrastructure in the metros and cities, which are
     used only when national or internationartournaments take
     place. For the rest of the period, stadia remain unutilized
     or are rented out for cultural programmes and other non-
     sporting events. The public at large generally does not           o
     have access to such huge stadia. A lot of money is being
     spent on their maintenance including security. Sports
     Federations and other bodies having offices there, do not
     pay the rent also. Besides, excellent infrastructure is
     created in different States by way of organizing National         E
     Games there. The Committee came to know that these
     generally remain idle most part of the year and States
     found it difficult to maintain. The Committee finds it ironical
     that on the one hand, we suffer from massive lack of
     infrastructure and on the other hand, our infrastructure
                                                                       F
     remains un-utilized or under-utilized. This is an unfortunate
     situation that needs to be corrected. The Committee
     strongly recommends to have a plan prepared for this
    ·purpose in consultation with all the State governments,
     Federations, Sports Authority of India, etc. for putting our      G
     infrastructure to maximum use".

     17. A sports complex cannot 'be converted into a
Recreation club. Recreational clubs usually have provisions for
recreation with swimming pool, tennis, badminton, table tennis
(indoor and outdoor sports), restaurant with bar, and lounges          H.
    740      SUPREME COURT REPORTS                   [2011] 7 S.C.R.


A and areas for gathering, interaction, and functions. Merely
  because a recreational club has provision for some sports
  activity like badminton or tennis, it does not become a sports
  club. Nor can a sports stadium belonging to the government with
  special infrastructure created for sports, athletes and sports
8 persons can be converted into a recreational club. Nor can a
  stadium complex be used for non-sporting recreational activities
  or for holding marriages and other functions, unless it had been
  planned in a manner providing for a recreational club. Persons
  experienced in sports administration and sportspersons should
C manage the stadia and not the Managing Committee of the
  recreational clubs.

          18. We may also note at this juncture the difference
    between exclusive sport stadia and multi-purpose community
    arenas. Multi-purpose community arenas can be used for sport
D   activities, community meets, and also for holding public or
    entertainment events. They ensure frequent use, optimum
    utilization and earning of adequate revenue to meet the cost
    of maintenance. If stadia have to be converted into a multi-
    purpose arena, then necessary provision should be made to
E   ensure that the use for public events or entertainment events
    does not affect the usefulness of the arena for sports. With
    adequate planning, constant maintenance, multi-purpose
    arenas may generate better income from non-sports activities
    which can be ploughed for its maintenance and upkeep of the
F   arena and development of sports. All sports facilities cannot be
    converted into multipurpose arenas. The object of these
    observations is not to encourage conversion or use of sports
    stadia into multipurpose community arenas or to approve the
    practice of using sports stadia for non-sports activities or for
G   public functions or entertainment events.

          19. If a chunk of~ Government stadium, being prime land
    in the heart of the city meant for developing sports and athletics
    is misused or illegally allowed to go into private hands, it cannot
    be said that no public interest is involved. While the High
H
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 741
            [R.V. RAVEENDRAN, J.]
Courts are not expected to take policy decisions in regard to         A
sports administration and infrastructure, nor e)(pected to
super\tise the running of the sports stadia, they are bound to
interfere and protect public interest when blatan.t misuse is
brought to their notice. The High Court should direct the
concerned. authorities to perform their duties and take action        B
in regard to the irregularities, omissions and negligence, so
that the interest of the public, particularly human resources
development, could be protected. Lack of commitment to the
cause of sports has ensured that India remains at the bottom
rungs of any international sports event, though it boasts of one      c
sixth of world population. Development of sports infrastructure
does not mean spending hundreds of crores for infrastructure
for some international event and then allowing the entire
infrastructure to go waste, but to ensure continuou.s and
effective use of those facilities and provide adequate
                                                                      0
maintenance and upkeep. Basic sports infrastructure should be
made available at village, taluka and district levels and there
should b~ a comprehensive plan for optimum utilization of the
facilities already available so that they are accessible to
sportspersons. The government cannot allow sports facilities          E
and sports bodies to be hijacked by persons totally
 unconnected with sports for private gain or for the benefit of an
 exclusive few. State of Haryana prides itself in giving importance
to sports. We do hope that the state administration realizes the
 needs of the society and the need for improving sports as an
 integral part of human resources development. Participation in       F
 sports and sport competitions builds patriotism and national
 pride, apart from other regular benefits.

    20. In this behalf we may refer to the following passages
from draft Comprehensive Sports Policy drawn up in 2007.              G
Dealing with playgrounds, it stated :

     "As regards the provisioning of space for playgrounds and
     the preservation of existing playgrounds, the National
     Sports Policy 1984 emphasized the importance of this and
                                                                      H
    742       SUPREME COURT REPORTS                   [2011] 7 S.C.R.


A         recommended legislation, if necessary, to secure this
          objective. No such legislation has been brought on the
          statute books and, in the meanwhile, the use of existing
          open spaces for purposes other than sports and games,
          as also the severe shortage of land for sports and games,
B         especially in urban areas, has become a serious issue
          calling for rectificatory action. It may be particularly noted
          that the seventh Survey has underlined the decline in
          schools of 5-9% between 1978 and 2002 in playfields and
          access to outside sports facilities. In contradistinction,
c         China, which has emerged as a leading-edge sporting
          nation over the past few decades, has 37 per cent of its
          population, which comes to about 480 million citizens,
          actively participating in physical education and sports
          activities. There are over 3,50,000 popular sports
          instructors. Even as far back as the year 2000, for which
D
          information is readily available, China had over 40,000
          grassroots level sports associations, 3854 urban
          community associations, 2000 community sports
          institutions, and over 1,00,000 part-time sports instructors,
          besides an incredible 6,20,000 sports facilities spread
E
          across the country. Even a small country like Cuba, whose
          population of about 11.5 million is comparable to that of
          NCT Delhi, boasts approximately 2 million athletes, of
          whom 23,000 are in the high performance category in 38
          different sports disciplines at the national and international
F         level."

         The draft policy pointed out following deficiencies in the
    existing sports management : ·

                 "access to sport and physical education
G                opportunities still remains highly inadequate,
                 especially in rural areas and· the poorer parts of
                 urban areas; and as a consequence, the levels of
                 participation in sport and physical education at
                 home, school, college, the community level and the
H                workplace are abysmally low;
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 743
            [R.V. RAVEENDRAN, J.]
          the participation of girls and women in physical        A
          education and sports is far below that of boys and
          men;

          persons with disability have hardly any access to
          sporting facilities and most of the sports
                                                                  8
          infrastructure is not disabled friendly;

          indigenous sports and games need to be brought
          centre-stage in the promotion of a national sporting
          culture;
                                                                  c
          education remains highly academic-centric with a
          definite trend towards reducing school sports and
          extra-curricular sports;

          India's performance in international sport needs to
          be significantly enhanced through a holistic and        D
          sportsperson centred cradlecto-grave sports policy;

        · to this end, and within the framework of the Olympic
          Charter, the Sports Authority of India, the Indian
          Olympics Association and the National Sports            E
          Federations need to be revamped, rejuvenated and
          reoriented to function in an open, democratic,
          equitable, transparent and accountable manner;

          as there is too much concentration if resources and
          public support on too few team sports like cricket,     F
          there is need to popularize other sports, especially
          medal-intensive individual sports disciplines such
          as athletics, gymnastics and swimming;
          sports medicine and sports science need particular      G
          attention;
          the scientific and technical support systems for high
          performing athletes are insufficient;"
   The draft policy spelt out the following solution :            H
    744       SUPREME COURT REPORTS                  [2011] 7 S.C.R.


A         "The Policy aims at adopting a holistic approach to sports
          development taking into account the health benefits,
          recreation benefits, educational benefits, social benefits,
          economic benefits and source of national pride that it
          offers. This would require a realignment of responsibilities
B         between the Union and State Governments, on the one
          hand, and, on the other, between Government and the
          Indian Olympics Association, the Sports Authority of India,
          the National Sports Federations and their affiliated bodies
          at the state and district level, and corporate bodies. This
          in turn might require Constitutional changes and the
c         elaboration of a suitable legal framework. The Policy ·shall
          endevour to achieve a shared vision amongst all
          stakeholders that would be realized through convergence
          of their efforts. Special emphasis will be laid on mobilizing
          corporate support in the field of sports. The participanU
D         athlete shall occupy centre-stage in the Comprehensive
          National Sports Policy, will all other stakeholders playing
          a promotional, supportive and convergent role towards
          achieving the goals of mass participation, expansion of
          thee talent pool, enhanced performance in competitive
E         sports, and the emergence of India as a vibrant leading-
          edge sporting nation in the world through transparent and
          effective sports systems. In other words, the policy would
          provide a conducive framework within which sports can
          develop and thrive."
F
         The said policy also made the following among other
    recommendations, to identify talented sportspersons who could
    use the facilities in the stadium complexes:
          "Fostering a sports club culture: Encourage and support
G         the setting up in both rural and urban areas, with particular
          emphasis on poorer localities, of a variety of public and
          private sports and youth development institutions, as well
          as sports and health clubs, to enable the young and the
          old, men and women, the physically challenged and the
H
'"RISHAN LAL GERA v. STATE OF HARYANA & ORS. 745
             [R.V. RAVEENDRAN, J.]

    children, casual players and serious contenders,                 A
    employees and professionals, the health conscious and
    talented sportspersons, to find a suitable playing
    environment to meet their playing needs. These sports
    clubs would either create their own facilities or access
    public or private facilities through suitable 'pay and play'     B
    schemes for their members. They could also avail of the
    governmental programmes and schemes to provide the
    required facilities, equipment and technical support".
    We are informed that the said draft policy and the
recommendations and suggestions therein were rejected by the         C
Sports Federations. Be that as it may.
    21. The following questions require to be addressed in
regard to this case :  ·
     Specific Issues:                                                D

     (i)    What is the basis for giving a virtual largesse of a
            huge property by the District Sports Council,
            Faridabad, to DCA Club at a paltry rent of Re. 1/-
            per annum, without inviting offers/bids, without         E
            ensuring exclusive use for sports/athletics?
     (ii)   When the lease deed categorically states that the
            lessee shall not carry out any additions and
            alterations to the building and shall not sublet or
            transfer its rights and the building shall not be used   F
            for any purpose other than the purpose for which the
            lease was granted, the reason why action has not
            been taken by the state government and district
            administration, against DCA Club for the violations
            of all these conditions, as admittedly DCA Club          G
            has granted licences which virtually amounts to sub-
            leases in regard to the leased premises, allowed
            constructions to be put up and allowed premises to
            be used for purposes other than the purpose for
            which it was leased.                                     H\
    746            SUPREME COURT REPORTS                 [2011] 7 S:C.R.


A          (iii)    Whether the entire stadium, in particular the Cricket
                    Stadium, football ground, basketball ground, athletic
                    tracks, swimming pool, badminton and lawn tennis
                    courts are accessible to the public or only to the
                    members of the club and if so on wtiat conditions?
B
           (iv)     What is the amount incurred by the DCA Club in
                    allegedly assisting in maintaining the stadia, athletic
                    tracks and other sports areas?

           (v)      Whether leases and sub-leases can be granted
c                   without any financial benefit to the owner of the
                    stadium complex, that too without any kind of open
                    competitive bidding?

           (vi)     What steps are taken to ensure that the entire
D                   stadium is used only for sports and sports related
                    activities and that access is provided to all persons
                    interested in sports by giving primacy to the sports
                    and athletics in the stadium complex.

           (vii)    Whether the lease in favour of DCA Club requires
E                   to be cancelled/revoked/terminated for breaches?

           General Issues:

           (viii) What steps are to be taken to ensure thafthere is
                  no diversion of the stadia and sports facilities for
F
                  non sports activities, recreational activities and
                  private commercial activities.

           (ix)     Whether there is any misuse or diversion to
                    unauthorized use, in respect of other stadia and
G                   sports facilities/complexes in the state and whether
                    there is any policy guidelines to prevent their
                    misuse or diversion to unrelated use?

          As the High Court has not considered these aspects and
H
KRISHAN LAL GERA v. STATE OF HARYANA & ORS. 747
            [R.V. RAVEENDRAN, J.]
the matter requires monitoring and appropriate directions, we     A
consider it necessary to remand the matter to the High Court.

     22. We therefore allow this appeal, set aside the order of
the High Court, remand the PIL to the High Court with a request
to the High Court to deal with and dispose of the matter in       8
accordance with law, in particular with reference to the issues
enumerated in the previous para and other issues that may
arise during hearing by the High Court.

R.P.                                         Appeal allowed.


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