DLTA seeks Rs 39 crore from AITA Trust as former chairman Anil Khanna faces scrutiny over land deals

New Delhi: The Delhi Lawn Tennis Association (DLTA) has sought recovery of Rs 39.09 crore from the AITA Trust, alleging that former chairman Anil Khanna used his multiple positions in Indian tennis administration to execute agreements that enabled the Trust to receive a share of the association's stadium rental income.

Separately, land transactions between the Trust and companies owned by Khanna have also come under scrutiny after he paid Rs 1.60 crore as interest for delaying the transfer of land sold to the Trust.

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The twin developments have intensified scrutiny of the AITA Trust's governance, financial decisions and potential conflict-of-interest issues during Khanna's tenure. While DLTA has accused him of abusing his positions to benefit the Trust, Khanna and the Trust have denied any wrongdoing, saying the agreements were legally executed and the land payment was only interest on a delayed registration.

DLTA alleges unauthorised agreements

In a notice dated July 14, DLTA alleged that the AITA Trust had been "fraudulently appropriating" rental income generated from portions of the R.K. Khanna Tennis Stadium, now known as DLTA Stadium. The association is seeking recovery of Rs 39.09 crore, along with 18 per cent annual interest, for payments made to the Trust between 2006 and 2023.

According to DLTA, Khanna simultaneously served as chairman of the AITA Trust, president of DLTA and president of the All India Tennis Association (AITA) when agreements signed in 2014 and 2017 enabled the Trust to receive a share of the stadium's rental income. The association has alleged that the agreements were executed without authority and to its detriment. It terminated both agreements in January 2023 and stopped further payments.

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The AITA Trust disputes the claim, maintaining that the agreements merely formalised its pre-existing rights over portions of the stadium and the rental income generated from those assets.

Trust says dispute will go to arbitration

Current AITA Trust chairman Dr Anil Jain rejected DLTA's allegations and said the dispute would now be decided through arbitration.

"This is DLTA's version. The Trust has a valid claim under the agreements. The matter will now go to arbitration. In fact, we believe DLTA owes money to the Trust and not the other way around."

Jain said AITA transferred its assets to the Trust when it was created in 2000 and that income generated by the Trust has always been used for tennis development and training activities.

Khanna rejects allegations

Khanna dismissed DLTA's allegations, saying the Trust had legitimate ownership rights over portions of the stadium and that the agreements were valid.

"The claim of DLTA is completely wrong. The AITA Trust built the original stadium after AITA invested the money. The agreements were duly approved and registered to protect the Trust's ownership rights. They are completely valid."

According to sources, DLTA earns around Rs 8 crore every month through government-approved rental agreements and employs around 140 staff members.

A finance expert told PTI that routing rental income to the AITA Trust also reduced tax liability because the Trust enjoys tax exemption under certain provisions of the Income Tax Act.

"That way all the money in AITA Trust became non taxable. It could be seen as tax evasion as well," he said.

Land transactions also under scanner

Separately, documents accessed by PTI show that while serving as chairman of the AITA Trust, Khanna oversaw the Trust's purchase of land in Gurugram from RLF Ltd and ULIL Ltd, companies promoted by him and now associated with members of his family.

The transactions have come under fresh focus after Khanna deposited Rs 1.60 crore with the Trust.

Jain said the payment represented interest recovered because the Trust had paid for the land years before its transfer and registration were completed.

"The Trust had paid for the land earlier but the registration happened much later. Since the land transfer was delayed, the Trust recovered interest of around Rs 1.60 crore from Mr Khanna. It was recovery of interest and not recovery for any bungling."

He added that an internal committee examined the transactions and no further action was recommended.

Khanna acknowledged that there were "some mistakes" during his tenure but denied any misuse of Trust funds or conflict of interest.

"Since the registration happened much later, the Trust asked me to pay interest for the delay in transferring the land, and I paid about Rs 1.60 crore to close the issue. It was not an admission of wrongdoing."

He said the Trust had used his land free of cost for nearly 15 years before deciding through resolutions to purchase portions of it below prevailing market rates. He also maintained that his interest in the transactions had been fully disclosed and approved by the Trust.

According to information accessed by PTI, the Trust originally owned two acres of land. It bought one acre from Khanna's company RLF Ltd in 2017 for around Rs 2 crore, while another parcel was purchased from ULIL Ltd in 2021 for around Rs 3 crore after the National Tennis Academy ceased operations following the Covid pandemic.

Khanna alleged that the controversy was being driven by "vendetta" ahead of the AITA elections and said neither he nor any member of his family intended to contest.

The dispute has added another layer to the governance challenges facing Indian tennis, with arbitration expected to determine the financial claims between DLTA and the AITA Trust while questions over conflict of interest in the land transactions continue to draw attention.

(With inputs from PTI)