Chandigarh, Dec. 9 -- Two weeks after demolishing unauthorised structures at Chandigarh Club, Sector 1, the UT Estate Office has decided to impose a penalty on the club for allegedly running commercial activities on encroached land for the past 15 years. The UT administration has made it clear that the pending lease deed will only be renewed after the club pays the full recovery amount. On November 24, the Estate Office demolished 32 illegal structures spread across nearly 70,000 square feet (about 1.6 acres) of the club premises. These included sheds, a kitchen and a banquet hall, primarily constructed by Commando Caterers Private Limited, which had been sub-leased a portion of the club property. Deputy commissioner-cum-estate officer Nishant Kumar Yadav said the accounts department was finalising the penalty amount and a recovery notice will be issued next week. He added that the recovery will be calculated from 2008-09 for all commercial activities carried out on the encroached land. "The amount is expected to run into several crores," he said. He also confirmed that the monthly per-member fee in the new lease deed will be increased from Rs.140 to Rs.160. Under the original lease terms, Chandigarh Club is required to deposit 25% of its revenue from commercial activities with the administration. Officials said the club failed to deposit its share from weddings and events held at the now-demolished banquet hall and the adjoining open ground. The club was originally allotted seven acres of land but had encroached upon an additional one acre, which the Estate Office reclaimed last month. The banquet hall on the encroached area was also demolished. The Estate Office is now calculating recovery charges for all commercial activities conducted on the additional land since 2008. The GST department is assisting in computing the final amount. Club president Sunil Khanna said the violations had been removed and argued that the licensee, Commando Caterers Pvt Ltd, should be issued the notice. However, Nishant Yadav clarified that it was the club that sublet the premises without informing the UT Administration and in violation of the lease deed. Commando Caterers Pvt Ltd had challenged the demolition in the Supreme Court, which ordered an immediate halt to further demolition and directed the petitioner not to use the illegal structures for commercial purposes until the appellate authority issues its orders. The club's lease deed expired in 2022. The Administration had earlier stated that a new lease would not be renewed until all violations were removed. Although the violations have now been cleared, officials said the lease will be renewed only after all recoveries are settled. The club must also submit a revised building plan to the Building Branch and the area SDO. A new lease will be executed only after the map is found compliant with norms. Established in 1957, Chandigarh Club is one of the oldest and most prestigious clubs in the city. Spread across 8.5 acres, it has sub-leased part of its premises to Commando Caterers Pvt Ltd. The club has approximately 7,200 members, including prominent politicians, bureaucrats, retired judges, senior advocates and business leaders....