Wednesday 29th, May 2024
canara news

AAI serves eviction notice to Hotel Leela for non-payment of Rs 258 cr dues

Published On : 10 Feb 2017   |  Reported By : Courtesy : business-standard   |  Pic On: Photo credit : business-standard


Mumbai (BS): The decision to issue eviction notice follows a lengthy litigation for recovery of dues Airports Authority of India (AAI) has issued an eviction notice to Hotel Leela in Mumbai, for non-payment of Rs 258 crore in dues.

Hotel Leela Venture Ltd, which operates the 391-room five-star property near the CSI airport, got the notice earlier this week. The decision was made public on Thursday, ironically Hotel Leela’s founder, the late C P Krishnan Nair’s, 95th birth anniversary.

Hotel Leela was among the first five-star properties to come up near the airport when the latter began operations a little over three decades earlier. This is also the Leela group’s first hotel.


The decision to issue the notice followed lengthy litigation for recovery of the dues. Last November a bench of the Delhi high court upheld an earlier decision by a single judge for paying Rs 258 crore in royalty to AAI.

The hotel had appealed against the single judge’s July 15 verdict, setting aside an arbitration award in favour of Leela Venture in 2012.

The arbitration award had declared that payment of royalty by Leela had become impossible and the parties could sign a new contract on possession of the property.

The area allotted by AAI was 29,000 sq metres, through different agreements.

“Since they (Hotel Leela) had defaulted in payment and also for other violations in terms of the agreements, and after prolonged litigation, the AAI board decided to terminate the contract. Accordingly, notices were issued for payment of dues and to handover the possession of the property latest by 31.10.2016. Since they had failed to hand over the possession and pay the dues within the stipulated date, the eviction and recovery proceedings have been commenced by the eviction officer and showcause notices have been issued for appearance on February 16, under the AAI Act of 1994,” the authority stated.

“The company is taking legal steps to defend the notice” said a Hotel Leela spokesperson.

 







More News

Sensex, Nifty fall 1% as crude oil prices surge
Sensex, Nifty fall 1% as crude oil prices surge
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Aamir Khan calls 'Thugs of Hindostan' role one of his toughest
Fuel prices continue to fall as global crude rates ease
Fuel prices continue to fall as global crude rates ease

Write your Comments

Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. canaranews.com will not be responsible for any defamatory message posted under this article.

Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on CANARANEWS to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using canaranews will be purely at your own risk, and in no way will canaranews.com be held responsible.