BMC earns Rs 18.4 crore from Mahalaxmi racecourse events in 20 months

Mumbai: In 20 months of taking over 120 acres of the Mahalaxmi racecourse land in July 2024 for the proposed Central Park project, BMC earned Rs 18.4 crore by renting the space out for large scale events.The venue has hosted several marquee international events, including the India edition of Lollapalooza, a concert by Guns N’ Roses and equestrian competitions, over the past two years. Records show that the last event was held on March 27 this year, while from March 23-26 was used as setup days, for which too the event organiser needed to pay BMC. March 28-29 were used as days for dismantling the setup. BMC earned over Rs 1.2 crore off that event alone.Seeking to streamline bookings and maximise revenue, the civic body had in Aug last year formalised a comprehensive policy governing commercial and non-commercial events on the racecourse land. Under a circular issued by the civic estate department, organisers will have to pay a licence fee of Rs 50 lakh plus GST for use of the ground for up to three days, including event day and the time required for erection and dismantling of structures. “Any additional day will attract a charge of Rs 12.5 lakh plus GST. The fee will be increased by 5% annually from Oct 1 every year,” said an official.The policy came after BMC found that several event organisers were reserving dates six to nine months in advance but were not confirming whether the events would eventually take place. This often left the civic body unable to process requests from other organisers and resulted in potential revenue losses.To address this, not only were advance bookings capped at six months, but organisers are also now required to pay 10% of the licence fee within 15 days of receiving a demand letter from the civic body. A formal reservation letter is issued only after this payment is made. The remaining amount, along with a refundable security deposit equivalent to 20% of the licence fee, must be paid within 30 days.The civic body policy also includes stringent cancellation clauses. Organisers cancelling events more than 150 days before the scheduled date will receive only a 50% refund. Those cancelling between 61 and 150 days before the event will get back 25% of the amount paid, while cancellations within 60 days of the event will result in complete forfeiture of the fee.Bookings are also to be allotted on a first-come, first-served basis. However, if multiple applications are received for the same dates, the final decision will rest with the municipal commissioner, states the policy.Organisers must obtain confirmation from Royal Western India Turf Club (RWITC), which runs the racecourse, that no horse racing events are scheduled during the proposed programme period and secure all necessary permissions from police, traffic, fire and other authorities.The 120.1-acre parcel was taken back by BMC from RWITC in July 2024 on an “as is where is” basis as part of its plan to develop a central urban park modelled on parks in global cities. While actual work on ground with regards to the project is yet to begin, the civic body has chosen to monetise the land through events, while making it clear that if construction of the proposed park begins, its only obligation to organisers will be to refund the fees collected.