04 Nov 2021  |   05:37am IST

State snaps contract with a hospitality firm after lease payment failure since 1998

Termination effective after six months from the order was issued

Team Herald

PANJIM: In a major decision, albeit much delayed, the government has terminated its contract with a hospitality firm as the latter failed to pay monthly lease of Rs 1 crore to the government since July 1998. 

The Department of Tourism had acquired land admeasuring 313630 sqmts at Aguada Plateau, Sinquerim under survey No. 96/0(part) at the cost of Rs. 53.02 lakhs to provide recreational and amusement facilities to the tourists.

Information to the media reveals that an area of 3 lakhs square mtrs of the total land was leased out to M/s Indian Resort Hotels Limited, Candolim by executing a Deed of lease dated June 19, 1997 between the Government of Goa and M/s Indian Resort Hotels Limited, for a period of 50 years commencing from July 1, 1997 and ending on June 30, 2047 for the purpose of developing a recreational and amusement park of international standards with allied facilities to be operative within 12 months at Aguada. The monthly lease rent of Rs 1 crore to the Government with effect from July 1, 1998 was fixed. 

“However, M/s Indian Resort Hotels Limited failed to pay the lease rent since then. The government hence terminated the lease deed from the company, now known as M/S The Indian Hotels Company Limited. The termination shall be effective from six months from the date of issue of the order,” an official communiqué stated. 

The decision comes after the firm failed to pay the rent despite a notice by the government. As per the order, the company is directed to handover vacant and peaceful possession of the premises on or before expiry of six months from the date of issue of the order. 

The government has also directed the stakeholder to pay the arrears of rent along with interest amounting to Rs 65, 02,47,123 within a period of 30 days from the date of receipt of the order failing which the Collector North Goa will take over the possession of the premises. It is however not revealed if the government will take legal action against the resort firm if the amount is not paid even after the new direction