NEW DELHI: The Delhi Metro Rail Corporation and the Taj Vivanta hotel in Dwarka have been served a show cause notice by the Delhi Development Authority (DDA) over non-payment of conversion charges since 2008, amounting to `1,100 crores.
According to the DDA, it had allotted land measuring around 15.99 hectares to the metro, which includes three hectares for property development for Airport Line in Dwarka. Property development areas are excess land which is transferred in order to generate revenue by leasing it out to private sector firms in culture, hospitality sector in return for resources. The DMRC, in turn, leased those three hectares to the Indian Hotels Company Limited, which runs the Vivanta, for 55 years, further renewable by 30 years.
“In the garb of public interest, many rules were violated by the DMRC regarding this project. We as the land owning agency are just pointing out the gross misrepresentations of facts and demanding our genuine share,” said a DDA official closely related to the project. According to cabinet approval in 2003, the Ministry of Urban Development allowed the DMRC to generate revenue from property development for the period of 6-20 years only, he noted.
According to the show cause notice, “The DMRC agreement which says that it (DMRC) has a ‘clear, free marketable title and the use of word ‘ownership’ with respect to the allotted land is not only incorrect but also complete misrepresentation of facts to M/s Indian Hotel Company while entering into an agreement with them” said the DDA’s Institutional Land branch in its show cause notice served on September 9.
While Taj officials declined to comment, Anuj Dayal, Executive Director Corporate communications DMRC, told The Sunday Standard that “We are aware of the show cause notice. The DMRC has communicated the suitable reply to the DDA in the matter with all the facts.”