Taking legal steps over AAI eviction notices: Hotel Leela
AAI had asked Hotel Leela Ventures to surrender 18,000 sq meter plot by October 31, 2016.
New Delhi: Hotel Leela Ventures today said it is taking "legal steps" over the eviction notices to it by the Airport Authority of India over two land plots near Mumbai International Airport.
"We confirm that the company has received notices from the Eviction officer, Airports Authority of India (AAI) Mumbai for eviction of the company from land of 18,000 sq meter as well as 11,000 sq meter," Hotel Leela informed BSE in a filing.
"The company is taking legal steps to defend the said notices," it added. The hospitality chain further informed that for 18,000 sq meter plot over which it has built a five star hotel, the company has appointed an arbitrator after AAI notified their intention not renew it again.
"The company invoked the arbitration agreement between the parties on the ground that there was an enforceable agreement for renewal of the lease. Since AAI did not respond, the company has filed an application before the Bombay High Court for appointment of an arbitrator," it added.
AAI had asked Hotel Leela Ventures to surrender 18,000 sq meter plot by October 31, 2016. For the other plot measuring 11,000 sq meters, on which it wants to construct a hotel, the company is contesting the order of the Delhi High Court, which had directed it to pay Rs 258 crore royalty.
"The company is contesting the judgement," it added. Last week, AAI had said it has started the eviction process against Hotel Leela Venture, which runs a five-star hotel on the plots of land leased to them. Besides, the national airports operator has started the proceedings to recover the dues.