The Times of India 22.02.2013
HUDA slaps fresh notice on Kingdom of Dreams over pending dues of Rs 13 crore
GURGAON: The Haryana Urban Development Authority (HUDA) has issued a fresh notice to Kingdom
of Dreams demanding Rs 13 crore. The February 19 notice, a copy of
which is with TOI, is regarding KoD's delaying payment of dues for the
past one year.
KoD has been informed that 5.66 acre of land in Sector 29 was leased out for a period of 15 years as per the lease dated July 30, 2009. According to HUDA, KoD, as per the lease condition, was required to deposit rent on or before the 7th of every month. KoD, however, has failed to deposit the monthly rent. "Now, Rs 13,13,38.880 up to February 22 2013 is outstanding and the notice has been sent to recover the amount," said a senior HUDA official.As per the notice, KoD has to clear the outstanding dues by 5pm on February 22, failing which necessary action as per HUDA norms and conditions of lease agreement will be taken.
HUDA had issued notices to KoD last year too, and had also explored the strategy of terminateing the contract with KoD. Another senior HUDA official said KoD had paid around Rs 2 crore last year but the outstanding amount still remains to be cleared.
If HUDA will terminate the lease agreement with KoD over non- payment of the dues, the official said:
"The decision to terminate the lease agreement or impose penalty will be taken by the headquarters. A detailed note has been sent to the HUDA chief administrator," the official said.
KoD had earlier said HUDA miscalculated the rent and overlooked the colossal investment made into the project. According to the agreement, the firm had to pay Rs 36 lakh rent per month and the company had to invest Rs 40 crore for the development of the site. KoD claimed the state government had allowed the project to be free of charge for one year, which has not been taken into account while calculating the rental dues. and date of actual possession of the land.
KoD has been informed that 5.66 acre of land in Sector 29 was leased out for a period of 15 years as per the lease dated July 30, 2009. According to HUDA, KoD, as per the lease condition, was required to deposit rent on or before the 7th of every month. KoD, however, has failed to deposit the monthly rent. "Now, Rs 13,13,38.880 up to February 22 2013 is outstanding and the notice has been sent to recover the amount," said a senior HUDA official.As per the notice, KoD has to clear the outstanding dues by 5pm on February 22, failing which necessary action as per HUDA norms and conditions of lease agreement will be taken.
HUDA had issued notices to KoD last year too, and had also explored the strategy of terminateing the contract with KoD. Another senior HUDA official said KoD had paid around Rs 2 crore last year but the outstanding amount still remains to be cleared.
If HUDA will terminate the lease agreement with KoD over non- payment of the dues, the official said:
"The decision to terminate the lease agreement or impose penalty will be taken by the headquarters. A detailed note has been sent to the HUDA chief administrator," the official said.
KoD had earlier said HUDA miscalculated the rent and overlooked the colossal investment made into the project. According to the agreement, the firm had to pay Rs 36 lakh rent per month and the company had to invest Rs 40 crore for the development of the site. KoD claimed the state government had allowed the project to be free of charge for one year, which has not been taken into account while calculating the rental dues. and date of actual possession of the land.
