Oberoi Realty, through a wholly owned arm, had a 50:50 JV with co-promoters of DB Realty to acquire the Mumbai hotel.
Oberoi Realty Ltd has said that an agreement signed by Siddhivinayak Realties Pvt Ltd (SRPL) with V Hotels Ltd to purchase the Centaur Hotel property in Mumbai has been terminated by the order of an arbitrator.
SRPL is a 50:50 joint venture between Oberoi Constructions (an Oberoi Realty arm) and Vinod Goenka & Shahid Balwa (co-promoters of DB Realty), who are currently in jail for alleged involvement in the 2G telecom scam.
Following the termination of the contract, V Hotels is liable to repay Rs 73 crore within 90 days. It was the initial amount paid by SRPL for the deal.
SRPL had entered into an agreement with the firm controlled by Ajit Kerkar (former Tata Group executive who had an acrimonious exit from Indian Hotels more than a decade ago) in March, 2005, to purchase the Centaur Hotel property for around Rs 300 crore.
The case has been pending for a long time between the two parties. While the arbitrator has terminated the deal, SRPL has also filed an application at the Bombay High Court, seeking an injunction against V Hotels.
Although unrelated, this comes soon after another project related to DB Realty was scrapped last week.
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