AAI issues notice, Leela Mumbai might have to shut

DELHI: Luxurious Leela Hotel in Mumbai may soon be shut, as the Airports Authority of India (AAI) has initiated the procedure to evict the hotel from its land near the Mumbai airport.

The eviction requirement cropped up after the hotel company defaulted on making payments for using the AAI land, reports The Economic Times.

“The total area of plot allotted by AAI is 29,000 sq metre through different agreements. Since they had defaulted in payment and also for other violations in terms of the agreements executed between the Airports Authority of India and M/s Hotel LeelaBSE -3.16 % Venture Ltd and after prolonged litigations, AAI Board decided to terminate the contract and accordingly notices were issued for payment of dues and to handover the possession of the property latest by 31.10.2016,” said a release from AAI.

Since they had failed to handover the passion of the property and pay the outstanding dues to Authority within the stipulated date, the eviction and recovery proceedings of dues have been commenced and Show-cause Notice have been issued for appearance on 16.02.2017 under the provisions of AA Act 1994,” the release said.

A spokesperson from Leela said the company is taking legal steps to defend the notice.


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