Appu Ghar amusement park in Gurgaon sealed for ‘non-payment’ of dues

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Haryana Shehri Vikas Pradhikaran (HSVP) on Sunday sealed Appu Ghar amusement park in Sector 29 of Gurgaon for alleged non-payment of dues of over Rs 48.56 crore including penalties, two days after he terminated the lease agreement with the theme park operator for violations of the terms and conditions of the lease agreement.

Sanjeev Singla, Estate Agent-II, HSVP said: “Several notices have been served for non-payment of rental fees and they have defaulted on payment. The rental agreement was terminated and, in accordance with the orders of the HSVP Chief Administrator, the amusement park was sealed.

HSVP officials that the land comprising two separate pockets in Sector 29 and Sector 52 for the creation of a theme park (amusement park) has been leased to M/S International Recreation and Amusement Ltd (IRAL) for a period of 33 years and that the lease contract was executed in June 2011.

HSVP officials said multiple notices in 2015, 2016, 2017, 2021 and 2022 were issued to amusement park management regarding unpaid dues. “As of July 31, 2022, the total amount of rent of Rs 24.28 crore was unpaid. However, you failed to pay a single penny in discharge of the aforementioned ground rent in accordance with the tenancy agreement. Therefore, Realtor-II had to impose an equal amount of penalty under Section 16 of HSVP 1977, so the total outstanding against you is Rs 48.56 crore as of 31 July 2022,” read a notice issued by HSVP to the company that operates the theme park.

HSVP added that an amount of Rs 95.20 lakh in respect of water supply is also outstanding against the company from 2016, which is payable to HSVP as of August 31, 2022. The administrator, HSVP, had terminated the rental contract on September 2, 2022. .

The notice further stated that the matter had been discussed at a recent meeting and that instructions had been issued to collect all outstanding dues as well as the penalty.

“Pursuant to the legal opinion, it has been observed that the IRAL/Resolution Claimant is illegally and unfairly operating the amusement park while awaiting the resolution process under the IBC without paying its long-standing unpaid dues and current HSVP dues…Your conduct was in violation of terms and conditions of the lease agreement signed on 6/14/2011 despite ample opportunity to pay dues as well as remove violations…Thus, the lease agreement signed between you and HSVP is terminated with immediate effect,” the notice said.

HSVP stated that the company violated the Sublease/License/Lease Terms and Conditions as conveyed by the Chief Administrator, HSVP, Panchkula, according to which the company in 2014 was granted permission to develop, construct the land of the Family Entertainment Center (FEC) project and raise funds for the project subject to certain conditions.

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“The Real Estate Office in a June 2016 memo informed you that you have sublet some premises in Appu Ghar without any permission from HSVP and you have not given any information to HSVP in this regard, which is a violation of the terms and conditions of the lease agreement,” the notice read.

Officials said instructions had been given to take possession of the site under Section 18 of the HSVP Act of 1977.

Rakesh Babbar, Suspended Director, IRAL, said: “The company is going through the Corporate Insolvency Resolution Process (CIRP) and is being managed by the Resolution Professional (PR) appointed by the National Company Law Tribunal ( NCLT) and the company is under moratorium. HSVP illegally sealed the property on Sunday despite RP showing all relevant documents.

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