Taking legal steps over AAI eviction notices: Hotel Leela
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.
Hotel Leelaventure, which owns The Leela Mumbai at Sahar Mumbai stated it has taken all legal steps to vigorously contest the notices and ensure its rights and options are protected under the law.
"For either party to make any definitive statements at this time would be premature.The Hotel operations are not affected in any manner due to this situation and it continues to be market leader. We remain committed to delivering the best possible services. In fact, a determination regarding this matter can only be made when the full circumstances surrounding the lease arrangements have been addressed under due legal processes," a company spokesperson stated.
Airport Authority of India terminated the land lease contract of Hotel Leela’s flagship Mumbai property and initiated eviction proceedings after the luxury hotel chain defaulted on payments of outstanding dues to the state-owned airport operator despite a court directive.
AAI also launched proceedings to recover dues of Rs 258 crore that the Delhi High Court had ordered Leelaventure to pay to the airport operator as royalty for possession of its property, AAI said in a release issued on Thursday.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.