SHILLONG: The management of The Shillong Club Ltd. has alleged that HK Loungani and Co., which is managing the residential portion of the club, has grossly violated the tenancy agreement.
The club in its letter dated May 30, 2011 has sent a notice of termination of the Deed of Tenancy Agreement (DTA) dated January 18, 2008 between HK Loungani and Co. and the Club.
In its letter dated March 25, 2011 the Club has alleged that the above agreement as represented by the then purported member secretary, Siddharth Ghosh of the Managing Committee (MC) of the club with HK Loungani and Co. has no legal authority to conduct any action on behalf of the Club.
However, even if the said MC/member secretary has the right to act on behalf of the Club, HK Loungani and Co. have committed breach of the terms of the DTA.
The Club management has alleged that Ghosh had illegally executed the DTA by claiming to be the member secretary of the Club when he was in fact elected for a period of one year only on June 29, 2005 and had no power or authority to act in any manner on behalf of the Club.
The letter observed that the agreement grants HK Loungani and Co. the right to occupy and manage the residential portion of the club as a proprietary and supervisory control being exercised by the Club but that the firm had violated the terms and defaulted in paying the instalments to the Club since April, 2008 onwards.
It is learnt that the residential portion was to accommodate only the members of the Club, permanent, affiliated or temporary but the firm has been allowing non-members to reside there.
The room rates and the charges for other facilities in the residential portion are to be decided by the Club from time to time in consultation with the firm. But the firm has been charging higher room tariffs than the rates approved by the club w.e.f. May, 2008, which is a breach of the agreement.
Further HK Loungani & Co have not submitted their accounts to the Club every month, to ensure conformity with the requirements of the DTA and to maintain transparency. The staff members working in the residential portion who are not employees of the Club are also unauthorisedly donning the club logo.
The firm is also alleged to have undertaken fresh construction in the residential portion in the name of repair and renovation works. These constructions have been utilized by the firm for other commercial purposes, totally unrelated to the Club’s residential premises.
HK Loungani & Co have been using the residential portion of the Club for various functions and providing catering services, apart from misusing the staff quarters and catering to non-members. Even the food rates have been flouted by the firm besides wrongful operation of a restaurant in the residential portion.
The Club management has also charged Loungani & Co of discharging effluents by violating environmental laws and for evading stamp duty and also unauthorized use of club logo on letterheads of the firm and the Club’s name in email ID among others.
Suresh Singh, managing director of the Club has alleged that HK Loungani and Co. through the BOT agreement surreptitiously signed in 2009 are intending to construct a hotel in a portion of the club.
“Loungani has violated all the clauses of the tenancy agreement and on the BOT agreement, the constitution of the Club does not allow private hotels in its premises. The former MC agreement was not in the interest of the club,” said Singh adding that no approval from its members was taken by the then MC and none were aware that there is such an agreement.
He even said that the present board of directors has drawn up a master plan to put in place a swimming pool, table tennis court, tennis court, changing rooms, health clubs, badminton courts, squash courts, in-house restaurant, park, get together lawn, children garden etc.