Chandigarh’s Hotel Park Plaza site is no stranger to controversies
Hotel Park Plaza in Sector 17 here is once again in the news, following non-payment of the bank loans, but this is not the first time that it has been embroiled in controversy.punjab Updated: Aug 20, 2016 14:14 IST
Hotel Park Plaza in Sector 17 here is once again in the news, following non-payment of the bank loans, but this is not the first time that it has been embroiled in controversy.
Ever since the land was allocated to the hotel and owing to the number of controversies, the property was looked as jinxed.
The district magistrate (DM)-cum-deputy commissioner of Chandigarh, Ajit Balaji Joshi has given permission to take physical possession of Hotel Park Plaza, Sector 17, to Punjab National Bank, Sector 17, for failing to pay an outstanding amount of Rs 115 crore.
History of the hotel
It took nearly 27 years for the hotel to come up on this prime commercial area, but not before undergoing changes in name and owners, Hotel Park Plaza was inaugurated in April 2012. The hotel was earlier to be named as James Plaza.
It was originally allotted as a 5-star hotel site in 1985 by the administration.
The administration had ordered resumption of the site in May 2008 for the third time owing to the failure of the owners to meet completion deadlines.
The site, measuring 9,600 square yards, was first allotted to Mehfil hotels, a company owned by former union minister and ex-Chandigarh MP Harmohan Dhawan, in August 1985, at the rate of `5,000 per square yard (`4.8 crore).
The lease deed was signed in January 1986. However, after the allottee failed to deposit the amount, the site was resumed the same year.
Dhawan had transferred his shares to his partner and withdrew. In December 2004, the site was restored to the owner. He was asked to deposit Rs 80,000 for this.
However, he failed again and the site was resumed once again in February 2006.
The site was restored to a new owner in May 2007 with the condition to complete the hotel within one year.
A year later, it was resumed again. But later, following the orders of the Punjab and Haryana high court, the building was restored to the owners in February 2009, with a completion deadline of 11 months.