Clear Juhu Centaur deal: Govt to Tulip

new delhi: the centre on friday asked ajit kerkar-promoted tulip hotels to produce documents by february 23 relating to payment for state-owned juhu centaur hotel or the government would invoke the bank guarantee given by the hotelier during the disinvestment process. "we have given them time till 1''o clock -- february 23, to furnish documents of finances and bring representatives of banks, failing which they would forfeit the guarantee amount," disinvestment minister arun shourie told reporters in new delhi. he said government would invoke the guarantee of rs 5 crore on monday if the bidder failed to adhere to the conditions. tulip group had successfully bid for centaur property of hotel corporation of india in november last year with an offer of rs 153 crore. sources said the kerkar''s company had earlier sought time till early march to clear the transaction saying it was tying up finances with a consortium of banks. in case tulip fails to clear the deal by the stipulated time (which could be extended upto march), government would end up getting only rs five crore through invocation of bank guarantee but the disinvestment process for the hotel would have to be started afresh. department is learnt to be upset over the attitude of the group with regard to payments. in fact government had given more time to kerkar group after it failed to come up with the payments. in return the government had demanded an enhanced guarantee of rs 41 crore for extension of time till march 9. the group had furnished another guarantee drawn on allied bank of boston situated in republic of pillao. that hardly satisfied the government because all disputes concerning payment were subject to the jurisdiction of pillao republic.