DLF has hit a roadblock yet again in its plans to develop a mall-cum-multiplex in Chennai. The company had entered into an agreement with Madras Race Club (MRC) on December 20, 2006 to take over 5.56 acre on a 66-year lease to promote a mall-cum-multiplex in Velachery, south of Chennai.
DLF, which outclassed several other bidders including Unitech, Taj GVK and Rahejas among others to bag the deal, had at that time agreed to pay an interest-free deposit of Rs 60 crore for lease period and Rs 3 crore per month as lease rental from the time of signing the deal. Even almost after four years, the project is yet to take off.
“The company was regularly paying the lease rental over these years. But, it has stopped doing so over the past six months,” a person privy to the development was quoted as saying in Financial Chronicle.
“The company was regularly paying the lease rental over these years. But, it has stopped doing so over the past six months,” a person privy to the development was quoted as saying in Financial Chronicle.
According to him, with a couple of malls already under construction in that region, DLF thought it would not be feasible to develop another mall. “Hence, it wanted MRC to sell the land, since it had the first right of refusal. However, MRC authorities insisted that DLF develop the mall,” he said.
Soon after, DLF stopped paying the lease rentals. MRC is reportedly contemplating a legal recourse. “Things have changed a little in that market. But, we are in talks with them,” said Rajeev Talwar, group executive director, DLF.
Soon after, DLF stopped paying the lease rentals. MRC is reportedly contemplating a legal recourse. “Things have changed a little in that market. But, we are in talks with them,” said Rajeev Talwar, group executive director, DLF.
Posts
