TSTDC reclaimed Rs 1,000 crore worth lands from defaulting firms

Hyderabad: The BRS government has started cracking a whip on firms that have not completed tourism-related projects as per contract, or failed to make lease payments after acquiring land for project development.

Tourism minister V.Srinivas Goud said his department had taken legal action against defaulting firms, recovered arrears of ₹ 50 crore, and reclaimed two sites at Shamirpet and Secunderabad valued at ₹ 1,000 crore.

Several companies had obtained valuable land in Hyderabad and surrounding areas in undivided Andhra Pradesh but but failed to implement them out even after a decade.

Following the directives of Chief Minister K. Chandrashekar Rao, the tourist department booked cases against them after the formation of the Telangana state in 2014.

Goud told the media on Sunday that the firms misused the land and even subleased it. TS Tourism Development Corporation (TSTDC) chairman Gellu Srinivas Yadav, managing director Manohar, and OSD Satyanarayana were present at the event.

The minister stated that Secunderabad Golf Course Pvt. Ltd was given 130 acres of land in Jawaharnagar, Shamirpet, in 2004 for the development of a golf course project. The bidder, Prajay Engineers Syndicate Pvt Ltd,  failed to complete the project within the timeframe and failed to pay the lease fee and additional development premium (revenue share).

After receiving notice of termination, the developer filed a case against the government. On April 8 last year, the High Court ordered the developer to pay ₹ 5.27 crore within three days as per their undertaking. Instead, the developer contested the case before the sole arbitrator who ordered Prajay Engineers to comply with the High Court's directives within 30 days, but the developer failed to do that too, according to the minister.

The TSTDC took over the possession of the property and would build a world-class branded showrooms centre, he added.

The TSTDC also took possession of open and worth ₹ 100 crore covering 4,600 square yards in Secunderabad, in addition to Yatri Nivas, he said. The land was leased out to E-City Giant Screen (India) Pvt Ltd on June 22, 2002.  

Notices were issued due to payment default and non-execution of the project. The firm went to court, and in a case of arbitration the TSTDC was awarded ₹ 22 crore. Finally, he added, tourism officials took over the land and deployed security. If any firm failed to pay the lease amounts to the TSTDC, Goud warned, criminal action would be taken.