HSVP officials that land comprising two separate pockets in sector 29 and sector 52 for setting up of theme park (amusement park) was leased out to M/S International Recreation and Amusement Ltd (IRAL) for a period of 33 years and the lease agreement was executed in June 2011.
The Haryana Shehri Vikas Pradhikaran (HSVP) Sunday sealed Appu Ghar amusement park in Gurgaon’s Sector 29 for alleged non-payment of dues of over Rs 48.56 crore including penalties, two days after it terminated the lease agreement with the operator of the theme park for violations of terms and conditions of the lease agreement.
Sanjeev Singla, estate officer-II, HSVP said, “Several notices had been served for non-payment of lease dues and they have defaulted on the payment. The lease agreement was terminated and as per the orders of chief administrator HSVP, the amusement park has been sealed.”
HSVP officials that land comprising two separate pockets in sector 29 and sector 52 for setting up of theme park (amusement park) was leased out to M/S International Recreation and Amusement Ltd (IRAL) for a period of 33 years and the lease agreement was executed in June 2011.
HSVP officials said that several notices in 2015, 2016, 2017, 2021 and 2022 had been issued to the management of the amusement park regarding the outstanding dues. “As on July 31, 2022, total lease rent amount of Rs 24.28 crore has been outstanding. However, you have failed to pay a single penny in discharge of the aforesaid ground rent as per the lease agreement. Therefore, estate officer-II had to impose an equal amount of penalty under section 16 of HSVP Act, 1977, thereby the total outstanding against you comes to Rs 48.56 crore as on July 31, 2022,” read a notice issued by HSVP to the company running the theme park.
HSVP added that an amount of Rs 95.20 lakh on account of water supply is also outstanding against the company from 2016, which is payable to HSVP as on August 31, 2022. The administrator, HSVP, had terminated the lease agreement on September 2, 2022.
The notice further said that the matter was discussed in a recent meeting and directions were issued to recover all outstanding dues along with the penalty.
“As per the legal opinion, it was observed that IRAL/resolution applicant is illegally and unjustly operating the amusement park during the pendency of resolution process under IBC without clearing its long outstanding dues and current dues of HSVP… Your conduct has been in contravention of terms and conditions of the lease agreement executed on 14/6/2011 despite giving numerous opportunities to pay the dues as well as to remove the violations… So, the lease agreement executed between you and HSVP is hereby terminated with immediate effect,” the notice said.
HSVP said the company had violated the terms and conditions of sub-lease/license/rent as conveyed by chief administrator, HSVP, Panchkula, whereby the company in 2014 was granted permission to develop, construct the Family Entertainment Centre (FEC) Project Land and raise finance for the project subject to some terms and conditions.
“The estate office in a memo in June 2016 informed you that you have sublet some premises of Appu Ghar without any permission of HSVP and you have not given any information to HSVP in this regard, which is a violation of terms and conditions of the lease agreement,” the notice read.
Officials said that directions have been given to take over possession of the site under section 18 of HSVP Act, 1977.
Rakesh Babbar, suspended director, IRAL, said, “The company is going through corporate insolvency resolution process (CIRP) and is managed by the resolution professional (RP) appointed by the National Company Law Tribunal (NCLT) and the company is under moratorium. HSVP has illegally sealed the property on Sunday despite the fact that RP showed all relevant documents.”
