After ₹28 crore tax notice, LMC ups the ante on Ekana stadium

After issuing a notice to Ekana Cricket Stadium in the state capital, Lucknow Municipal Corporation (LMC) has written to the Board of Control for Cricket in India (BCCI) and the Union ministry of youth affairs and sports over house tax dues worth ₹28.42 crore that the stadium was yet to clear.

While confirming the development, LMC officials said the reason for writing the email was just to inform the BCCI and the government about the outstanding dues of the sports complex.

Sanjay Yadav, the zone 4 in-charge, said the purpose of the email was also to highlight the stadium’s failure to clear its dues despite hosting multiple commercial activities.

On Saturday, LMC’s zone 4 issued the notice that stated that the stadium’s total tax liability since December 1, 2020, was ₹28.42 crore.

LMC officials said the stadium, despite being a sports facility, also operated as a commercial entity by hosting corporate events, weddings, and various entertainment programmes. While the stadium management reportedly seeks tax exemption by citing its status as a sports venue, LMC insists that the property must be taxed as per commercial rates due to its extensive non-sporting activities.

“The stadium is generating revenue from multiple sources beyond cricket matches, yet it is not fulfilling its tax obligations,” an LMC official stated.

LMC assessed the stadium under commercial tax regulations after verifying the range of events held at the venue. It believes that the property’s tax exemption claim is unjustified since it is being used for profit-driven activities beyond just sports.

Legal measures, penalties, or other recovery proceedings may be initiated if the dues remain unpaid.

Meanwhile, an official in the operations department of the stadium said he was yet to receive any notice over pending house tax bills from the LMC.