NEW DELHI: State-owned Airports Authority of India (AAI) has terminated a land lease contract with luxurious Hotel Leela and has initiated for its eviction from its land after being taken to task by the Supreme Court on February 5.
AAI in a statement on Thursday said the total area of the plot allotted by AAI is 29000 sq metre through different agreements.
Since they had defaulted in payment and also for other violations in terms of the agreements executed between the AAI and Hotel Leela Venture Ltd. and after prolonged litigations, AAI Board decided to terminate the contract and accordingly notices were issued for payment of dues and to handover the possession of the property latest by October 31, 2016.
“Since they had failed to handover the possession of the property and pay the outstanding dues to Authority within the stipulated date, the eviction and recovery proceedings of dues have been commenced and show cause notice have been issued,” AAI said in a statement.
A bench led by Chief Justice of India J S Khehar called it “very unfortunate” that the Centre was “still making requests” and had not gone ahead to effectively retrieve the money. The bench, also comprising Justice N V Ramana, was hearing a petition by ‘Resources of Aviation Redressal Association’, which had pleaded the court to order for auctioning of AAI land leased to the Leela Group.
Hearing the case, the Supreme Court on February 5 asked the Central government whether it is “hand in glove” with people who do not pay.