The Board of Control for Cricket in India will pay Mumbai Cricket Association around Rs 23 crore as its "contribution" to the affiliated unit's "cricket development" purposes, in lieu of lease rent for occupying its premises at Cricket Centre inside the Wankhede Stadium complex.
Sharad Pawar, who heads both the cricketing bodies, told the MCA's general body last evening that the BCCI would pay Rs 7.98 crore for having its headquarters on a couple of floors at the Association's premises and Rs 15 crore for housing its sub-committee Indian Premier League on the fourth floor of the same building.
"The amount is not to be termed as rent which would attract 50 per cent tax, but is BCCI's contribution to MCA for cricket development," Pawar told the AGM at which a resolution was passed to change its memorandum of rules to allow the president to continue to occupy his post for more than the stipulated eight years.
Some objections were raised on changing the compensation to be paid by BCCI from "lease rent" to "contribution for cricket development," notably by member Sripad Halbe, who felt it could be a violation of tax rules, but they were brushed aside.
Halbe was also not in favour of changing the memorandum of rules removing the eight-year restriction for an incumbent to re-contest for the president's post.
But the resolution moved by another member was passed with a massive majority, paving the way for Pawar to rule the MCA till at least the 2011 World Cup to be co-hosted by India.
The final of the mega event is also scheduled at the Wankhede Stadium that is currently undergoing massive renovation that's projected to cost Rs 150 crore out of which Rs 50 crore is being contributed by the BCCI as its share of the cost of infrastructure developments undertaken by its affiliated units.
Most of the members of the house favoured Pawar, who is to step down as the BCCI chief at its AGM on September 27 and 28, to be at the helm of MCA's affairs for his role in solving many tricky issues that confronted the MCA in the past.
Pawar also revealed to the house that he's in the centre of efforts to bring down the taxation rate for sports bodies after having interacted with the highest authority in the country (Prime Minister Manmohan Singh) on the subject recently.
"A small group myself, the revenue secretary of the finance ministry and another member of the BCCI - have been asked to discuss the matter and, if successful, will benefit all sports bodies in the country. The taxation rate for all sports bodies may come down to around ten or 11 per cent", he said.
