Haryana agency issues termination notice to operator of Appu Ghar water park

The Haryana Shahari Vikas Pradhikaran (HSVP) issued a termination of contract notice to International Recreation and Amusement Ltd, which manages the Appu Ghar water park, for allegedly violating the lease agreement

The Haryana Shahari Vikas Pradhikaran (HSVP) issued a termination of contract notice to International Recreation and Amusement Ltd, which manages the Appu Ghar water park, for allegedly violating the lease agreement.

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The notice, issued on August 19, said the company owed the authority around ₹20 crore that it failed to pay despite repeated reminders. It gave the operator 60 days to submit a reply, and if found unsatisfactory, then the authority will take action, said HSVP officials.

In June 2011, the 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. While the water park came up in Sector 29, the land in Sector 52 remained unused.

According to the notice, which HT has seen, the terms and conditions of their agreement required the operator to obtain a joint insurance, which too was not fulfilled. “... as per the clauses of the lease, all insurance policies are to be taken in the joint name of HSVP for which you were requested to submit proof regarding compliance and given 30 days to cure the breaches but till date you failed to deposit the outstanding dues and comply with lease agreement,” read the notice issued by HSVP estate officer II.

The Appu Ghar operator is already facing a number of criminal cases lodged by investors for the delay in the projects. They claimed to have invested ₹350 crore and alleged that the company promised them handsome returns on the project that was expected to be completed in 2015.

The project developer said the National Company Law Tribunal (NCLT) was looking into the matter and its decision would be applicable to all.

“This matter is sub-judice in the NCLT and various other courts, and as such, the HSVP termination notice is not legally tenable. We will abide by the directions of the courts and NCLT. Our company has invested everything in this project without taking a bank loan. The last couple of years have been hard on us,” said Rakesh Babbar, a director of IRAL.