The Haryana Urban Development Authority (HUDA) has issued a notice to Gurgaon-based Kingdom of Dreams (KoD) for non-payment of dues to the tune of Rs 32 crore. HUDA has threatened to shut the operations of the live-entertainment venue and terminate its lease if the company fails to pay up immediately. This is the second complaint against KoD, located in Sector 29.
KoD's holding company, the Great India Nautanki Company Limited (GINC), was given 5.6 acre of prime HUDA land in Sector 29 on lease for a monthly rent of Rs 36 lakh in March-April 2009, with rent payable from April 2009.
Since 2013, both HUDA and the GINC have been at loggerheads over payment. Three litigations have already been initiated by the GINC, one of which was filed in September at the Punjab and Haryana High Court, and two others at the Gurgaon District Court.
HUDA officials said that so far, the GINC has issued only one cheque worth Rs 3.92 crore in 2013, and that, too, bounced. “The company has not paid the fixed lease rent till date, which, after interest calculations, has reached a staggering Rs 32 crore. HUDA has issued several notices, but the KoD has not paid up so far. The head office now has instructed us to initiate strict action against the company,” said a senior HUDA official.
But the GINC has a different story to tell. A KoD spokesperson said it has challenged the value of the outstanding dues calculated by HUDA. “There are many unresolved issues in the tender agreement, such as provisions of service tax, TDS, moratorium period and full possession of the plot. That’s why the company has not been able to generate enough revenue and is, therefore, unable to pay back loans or lease rental,” he added.
When quizzed about the bounced cheque, he replied, “As for the September 2013 cheque, we had deposited it on one condition — that HUDA would encash it only upon extending the moratorium. Instead, HUDA just sent it for encashment, without even consulting us.”
