Kingdom of Dreams in Gurgaon sealed for ‘non-payment’ of dues

HSVP also imposed a fine of Rs 100 crore on M/S Great Indian Nautanki Company Pvt Ltd and alleged breach of terms and conditions of the rental agreement and another fine of Rs 114.15 crore for alleged encroachment on 1.34 acres of HSVP land adjoining the auditorium.

gurgaon dream realmEntrance to Dream Kingdom Gurgaon (Express Photo)

The Haryana Shehri Vikas Pradhikaran (HSVP) has sealed Gurgaon entertainment, theater and recreation center Kingdom of Dreams for alleged non-payment of dues of Rs 108 crore and took possession of its auditorium on Friday.

It also imposed a fine of Rs 100 crore on M/S Great Indian Nautanki Company Pvt Ltd, which operated the building, allegedly breaching the terms and conditions of the lease agreement and another fine of Rs 114.15 crore for alleged encroachment of 1.34 acres of HSVP land adjoining the auditorium.

On July 7, the estate agent sent a show cause notice to the company stating that it had failed to pay the rent, which overdue amounted to Rs 108.44 crore including interest till 6 July 2022.
(PhotoExpress)

Sanjeev Singla, Estate Agent, II, HSVP, told The Indian Express, “Several notices have been served for non-payment of rental fees and they have defaulted on payment. Last week the rental agreement was terminated and as a next action we sealed the premises today and took possession.

In 2008, HSVP had leased 5.66 acres (Auditorium Site/Building) in Sector 29 to Operators for 15 years for the operation, maintenance and management of the Auditorium as well as the construction, supply of facilities required and its commissioning. The monthly rent was Rs 36 lakh with a condition that the rent would increase by 10% every three years. In 2014, the company waived the payment and requested an exemption.

The administrator, HSVP, Gurgaon terminated the rental agreement on July 6th.

“According to the terms and conditions of the rental agreement, you had to pay monthly rent. However, you didn’t. Now, an amount of Rs 107.15 crore is outstanding against you as of June 10, 2022. Therefore, a show cause notice has been issued dated June 10 and through this notice you have been requested to file the unpaid rent or to submit a response on justification. notice within 15 days, but neither the unpaid rent has been filed nor a response to the show cause notice has been submitted, showing a clear violation of the terms and conditions of the lease agreement. Accordingly, the rental agreement executed on February 15, 2008 is terminated with immediate effect,” reads a notice issued by HSVP to the company.

On July 7, the estate agent sent a show cause notice to the company stating that it had failed to pay the rent, which overdue amounted to Rs 108.44 crore including interest till 6 July 2022.

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Elaine R. Knight