Telangana: Snow World in legal tussle with tourism department

Hyderabad: Ocean Park Multitech Limited’s Hitech entertainment complex, Mayabazaar, on Lower Tank Bund Road, that includes Snow World, has entered into a legal battle with the Telangana State Tourism department.

The government served a termination notices to it for non-payment of '50 lakh in additional development premium (ADP) per month and irregular payment of monthly lease rental.

Ocean Park filed a writ petition in the Hyderabad High Court against the termination of the lease agreement from the prime land of 1.89 acres. The Tourism department has also served notices of termination to Expotel Hotel, which was not paying the ADP because, they said, they have low occupancy.

Expotel is located besides Snow World. Another company that was supposed to build a hotel at Gachibowli was also served termination of agreement notice as it failed to build the hotel.

TS Tourism department secretary B Venkatesham said, “Ocean Park Multitech is not paying instalments of ADP and  the monthly rental on time though they constructed Snow World and other attractions as per the deal. We served them termination notices. Their contention is that there should be parking space, nearby places are not developed, and they are not getting the crowds as expected. This argument doesn’t gel with the deal based on essentials. There is always risk in the business. The lease holders have to fulfil the conditions of the agreement.”

He added, “The court has asked them to pay '50 lakh per month. They paid one instalment and then stopped and we brought this to the notice of the High Court.”

Ocean Park asked the court to issue orders declaring the action of the tourism department illegal. It has sought to extend the time granted for payment of Rs 19 lakh by a period of three months and the payment of the balance Rs 50 lakh by six months.

Mr Venkatesham also confirmed that termination notices have been given to two other companies, Expotel at Lower Tank Bund and a company in Gachibowli.  “Expotel is paying lease rental but not the premium citing low occupancy. We provided the land. They have to develop infra and bring business. Another company at Gachibowli did not construct the hotel, despite being given the land.”