Sunday, September 25, 2022

Gurugram’s Appu Ghar park sealed over unpaid dues

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Due to the non-payment of dues totaling 24 crores, the Haryana Shahari Vikas Pradhikaran (HSVP) terminated the lease agreement with the operator on September 2. As a result, the HSVP sealed the Appu Ghar amusement park in Sector 29 on Sunday.

International Recreation and Amusement Ltd (IRAL), the project promoter, has also been fined 24 crores by the authorities for breaching contractual obligations and failing to make rent payments, according to HSVP officials.

The total amount of outstanding debt owed by IRAL, according to Sanjeev Singla, estate officer II, HSVP, is 48.57 crores, and despite numerous notices being sent in 2015, 2016, 2017, 2021, and 2022, the company has not paid.

“On September 2, the authority terminated the lease agreement due to the promoters’ failure to pay the dues after extensive deliberation and discussion. This land was taken over on Sunday and belongs to the authority, he claimed.

The company was in violation of several contract provisions, according to the authorities’ termination order. The Appu Ghar amusement park’s premises were being sublet by IRAL, according to HSVP’s order, without the authorities’ knowledge or consent.

It further stated that by failing to buy the insurance jointly in the name of HSVP, the company had broken the terms of the agreement. IRAL’s assertion that the project fell under the purview of a Mega Tourism project was also refuted by HSVP in its order.

“IRAL is illegally and unjustly operating the amusement park during the pending resolution process under Insolvency and Bankruptcy Code (IBC) without clearing long-standing dues,” the order stated, citing the legal aspects.

Before ending the lease agreement, Singla claimed that the company had received several notices but had not responded. He stated, “The amusement park was taken over in accordance with the directives of chief administrator, HSVP.

Investors have already filed a number of lawsuits against the Appu Ghar operator for the projects’ delays. Last year, a notice of contract termination was given to the owner of the Appu Ghar water park.

IRAL had leased land in two different pockets in sectors 29 and 52 for the construction of a theme park for 33 years, and a lease agreement was signed on June 6, 2011, according to the termination order issued by Jaspreet Kour, administrator, HSVP Gurugram, on September 2.

IRAL, on the other hand, claimed that the National Company Law Tribunal (NCLT) was investigating the situation, that the project fell under the Insolvency and Banking Code 2016, and that HSVP’s decision was flawed. “HSVP made a hasty decision, and we weren’t made aware of the drastic choice to close the park. The court-appointed resolution specialist has already been informed of the situation, and we have requested that he take appropriate action. We’ll argue against it in court. The closure of the theme park will result in job losses and substantial revenue losses for the government, according to Rakesh Babbar, director of IRAL.

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