Kingdom of Dreams, Gurgaon's sole entertainment house, has failed to pay dues worth Rs 11 crore to the Haryana government, the estate office of the Haryana Urban Development Authority (Huda) said.
According to a senior official in the Huda estate office department, the dues consist of the monthly rent for the period of 2009-2010, service tax and the compound interest of the past four years.
Fearing legal action, the Kingdom of Dreams (KoD) gave a representation to the Haryana government seeking exemption of the monthly rent of 2009-2010, which would amount to Rs 4.32 crore and would include exemption of service tax and compound interest.
Pradeep Bhardwaj, general manager, KoD said, "The Haryana government may waive off the monthly rent for 2009-2010. The rent due between July 2009 and June 2010 amounts to Rs 4.32 crore and falls in the moratorium period for which we have requested a waiver." However, the local Huda office is yet to receive any intimation from Chandigarh.
"We haven't got any information on waiving off the dues under the moratorium period from the state government," said Praveen Kumar, administrator, Huda.
The Gurgaon Citizens' Council (GCC), a body that had opposed leasing out prime land to KoD and Appu Ghar, has condemned the Haryana government for going slow on this issue.
"Instead of declaring KoD as a defaulter, the government is considering an exemption of Rs 11 crore. This is unlawful" said RS Rathee, president of GCC.