Indian Express 10.12.2009
Ahmedabad civic body terminates 10-yr lease agreement
The much-hyped lease agreement between the Indian Cricket League (ICL) parent company, Essel Sports Private Ltd (ESPL), and the Ahmedabad Municipal Corporation (AMC) for the use of Sardar Patel Stadium has been terminated.
The termination of agreement came as ESPL defaulted on timely payment of quarterly rent.
ESPL made a payment of the first quarterly rent of Rs 3 lakh in February, nearly five months after the due date of September 1, 2008. The default continued till June, as a result of which by the time the fourth quarter became due, the amount piled up to Rs 9 lakh.
The AMC then slapped a show cause notice on ESPL on October 27 asking as to why the agreement should not be revoked in view of the default. The AMC was not satisfied with the explanation offered by ESPL saying that the default was “due to unavoidable circumstances”.
A cheque for Rs 3 lakh was attached with the explanation of October 23, with a promise that the remaining due of Rs 6 lakh will be paid by November 30. Former Indian team wicket keeper Kiran More, who has been connected with the ICL, said he was unaware of the development and that he had no idea of whether the contract was terminated.
The Leader of Opposition in the civic body, Surendra Baxi, has criticised the AMC for sleeping on the action and issuing showcause notice despite knowing about the default.
