TIRUCHY: The Tamil Nadu Tourism Development Corporation (TTDC) on Wednesday took possession of the leased land in Kajamalai, Tiruchy, where SRM Hotels had been operating for three decades.
According to sources, the action follows the expiry of the 30-year lease agreement between the TTDC and SRM Group, signed in 1994.
The agreement had permitted the SRM Group to run its hotel on 4.7 acres of TTDC-owned land. Though the lease period concluded in June 2024, the hotel management sought an extension despite outstanding dues of `38.85 crore out of the total lease amount of Rs 47.93 crore.
TTDC declined the request and moved to reclaim the property.
Meanwhile, the SRM management approached the Madurai Bench of the Madras High Court and secured an interim stay. As per the order, the group did not remit the interim amount of Rs 20 crore.
In a subsequent order, the court directed that the land be handed over to TTDC, citing the expired lease and dues. Following the court’s directions, a team of revenue officials, accompanied by senior TTDC officers took possession of the premises.