Gurugram's Appu Ghar park sealed over unpaid dues

The authorities have also imposed a penalty of ₹24 crores on International Recreation and Amusement Ltd (IRAL), the project promoter, for contractual violations and its failure to pay the rent, said HSVP officials

Gurugram: The Haryana Shahari Vikas Pradhikaran (HSVP) on Sunday sealed the Appu Ghar amusement park in Sector 29 after it had issued a termination of lease agreement to the operator on September 2 over issues of non-payment of dues worth ₹24 crores.

Appu Ghar in Gurugram. (Parveen Kumar/HT Photo)

The authorities have also imposed a penalty of ₹24 crores on International Recreation and Amusement Ltd (IRAL), the project promoter, for contractual violations and its failure to pay the rent, said HSVP officials.

Sanjeev Singla, estate officer II, HSVP said that total pending dues owed by IRAL amount to ₹48.57 crores and despite repeated notices issued in 2015, 2016, 2017, 2021 and 2022, the company did not pay. “After detailed discussions and deliberations, the authority terminated the lease agreement on September 2, because the promoters failed to pay the dues. This land belongs to the authority and was taken over on Sunday,” he said.

The termination order issued by the authorities further said that the company was violating several clauses of the contract. HSVP in its order said that IRAL was subletting the premises of Appu Ghar amusement park without intimating the authorities or seeking their permission. It added that the company violated the contract by not purchasing the insurance jointly in the name of HSVP. In its order, HSVP also refuted IRAL’s claim that the project came under the ambit of Mega Tourism project.

Citing the legal aspects, the order said, “IRAL is illegally and unjustly operating the amusement park during the pending resolution process under Insolvency and Bankruptcy Code (IBC) without clearing long standing dues.”

Singla said that several notices were issued to the company before terminating the lease agreement but it did not respond. “The amusement park was taken over as per the directions of chief administrator, HSVP”, he said.

The Appu Ghar operator is already embroiled in a number of legal cases lodged by investors for the delay in the projects. The Appu Ghar water park operator was issued a termination of contract notice last year.

As per the termination order issued by Jaspreet Kour, administrator, HSVP Gurugram on September 2, IRAL had leased land in two separate pockets located in sector 29 and 52 for setting up a theme park for 33 years and a lease agreement was executed on June 6, 2011.

Following the agreement, HSVP allotted IRAL 42 acres — 25 acres in Sector 29 and 17 acres in Sector 52 — to set up a water park and a commercial mall.

IRAL, however, said the National Company Law Tribunal (NCLT) was looking into the matter and the project was under Insolvency and Banking Code 2016 and HSVP’s decision was untenable. “The decision taken by HSVP was hasty and we were not informed about the drastic decision of sealing the park. We have already taken up the matter with the court-appointed resolution professional and asked him to take corrective measures. We will fight it in the court of law. Closure of the amusement park will lead to loss of jobs and will also cause substantial revenue to the government,” said Rakesh Babbar, director, IRAL.