KoD obtains stay order on HSVP lease termination

Gurugram: Kingdom of Dreams (KoD) management on Friday obtained a stay order on a notice to terminate their lease agreement issued by the Haryana Shahari Vikas Pradhikaran (HSVP)

Published on: Jul 20, 2022, 02:37:13 IST

By Leena Dhankhar

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Gurugram: Kingdom of Dreams (KoD) management on Friday obtained a stay order on a notice to terminate their lease agreement issued by the Haryana Shahari Vikas Pradhikaran (HSVP). HSVP sealed the cultural hotspot in Sector 29 for non-payment of dues to the tune of over ₹100 crore on Friday.

KoD approached the court on Friday as soon as HSVP teams sealed the main gate. Rajiv Goel, additional district judge, exclusive commercial court granted ex-parte interim injunction in favour of KoD.

“Having considered the contentions so made and perused the file, it is directed that till next date of hearing, respondents shall not cause any interference in the possession of petitioner over the auditorium building in any manner except in due course of law. The order is subject to compliance of Order 39 Rule 3 CPC which be made forthwith,” the court order said.

The court also issued notice to HSVP to submit a reply on August 18 , a copy of which is available with HT.

“We filed a petition on Friday for granting ex-parte interim injunction against the dispossession of petitioner from KoD’s auditorium building of KOD in Sector 29. We have contended that respondents are bent on taking forcible possession of the building,” said Vinay Shukla, counsel for KoD. He said that HSVP sealed the cultural facility despite being intimated of the stay order granted by the court.

According to a KoD senior official, HSVP issued a notice on July 6, terminating the lease agreement signed on February 15, 2008. he claimed that the management did not receive the notice. “The lease is valid till July 29, 2024. HSVP officials visited KoD again on Friday night and sealed remaining gates despite knowing that interim relief has been granted to us. They are intentionally harassing us,” he said.

On the other hand, the HSVP officials said they are unaware of any interim stay order. “The property is in our possession and we have already terminated the lease. We will submit our reply in court once we receive the notice. We have acted in accordance with law and followed due process. During sealing, we asked the management to provide lease documents in presence of a duty magistrate, but they failed to do so,” said Sanjeev Singla, estate officer -II, HSVP.

KoD, operated by the Great Indian Nautanki Company, initially owed ₹42 crore to HSVP, but the amount kept compounding due to non-payment of dues, officials informed. KoD was issued several notices for non-payment of dues and the authority was on the verge of closing it down before a proposal was submitted by the management seeking help from the state government. One such notice was issued in September last year, when HSVP asked KoD developers to clear the then total accumulated rent of ₹107 crore, including interest.

HSVP leased 5.66 acres (auditorium site and building) in Sector 29 to KoD for 15 years in 2008. The monthly rent was ₹36 lakh with a condition that it would increase by 10% every three years. In 2014, the company reneged on payment and sought an exemption. As part of the exemption, developers sought an extension of lease period from 15 to 99 years, along with a extension of rent moratorium from 12 (from the date of allotment) to 44 months, and permission to sub-lease the land.

Officials said while KOD defaulted on paying ₹108 crore in rent, HSVP imposed a penalty of only ₹100 crore . KoD have also been accused of encroaching on 1.5 acres of government land, officials said.

ABOUT THE AUTHOR
Leena Dhankhar
Leena Dhankhar is Senior Editor and Bureau Chief, Gurugram, at Hindustan Times, where she has spent over 17 years chronicling the transformation of one of India's fastest-growing urban regions. From starting her career as a crime reporter to leading the Gurugram bureau, her journalism has been defined by investigative reporting, in-depth storytelling and an unwavering focus on public interest. Over nearly two decades, she has reported extensively across crime, politics, civic governance, elections, real estate, environment, courts, sports, education and entertainment, covering Gurugram, Faridabad, Nuh and Palwal. Her reporting has exposed several major scams and systemic failures, including insurance frauds, waste management irregularities, illegal arms manufacturing units in Nuh, illegal mining in the Aravallis, organised crime networks and governance lapses affecting millions of residents. Known for her investigative work and exclusive stories, Leena has reported on high-impact national issues, including the Nicaragua charter flight carrying Indian migrants that was turned back amid allegations of human trafficking, exposing the growing network of illegal immigration rackets. Her work has also focused on gang wars, prison administration, juvenile crime, women and child protection systems, the functioning of the Juvenile Justice Board and Child Welfare Committee, and environmental challenges such as pollution, waterlogging and deteriorating civic infrastructure. Beyond hard news, Leena has extensively documented Haryana's rich heritage, forests and wildlife, bringing attention to the state's historical landmarks, biodiversity, conservation efforts and ecological challenges through immersive reportage and feature writing. Her journalism has consistently gone beyond breaking news. She has documented Gurugram's rapid urbanisation through long-form narratives and enterprise reporting on issues ranging from pothole-ridden roads, flooding and waste management to the changing social fabric of India's Millennium City. She also writes widely read feature columns, including The Outsider, Changemaker, and Concern for Gurugram, profiling people, places and ideas shaping the city's identity. Leena is the author of Gurugram School Murder, published by Juggernaut Books, a deeply reported account of one of India's most high-profile school murder investigations. She is currently working on her second book, an investigative work exploring some of India's most significant scams and fraud investigations. Beyond print journalism, she has expanded her storytelling through public speaking and digital media. She is a TEDx speaker and has produced podcasts exploring Gurugram's transformation, civic challenges and untold stories. Her work reflects a commitment to narrative journalism that combines rigorous reporting with compelling storytelling. A law graduate with an MBA in Human Resources, Leena brings a multidisciplinary perspective to her reporting, particularly on governance, public policy and legal affairs. She has travelled extensively across India to pursue investigative assignments, often reporting from remote locations and conflict-prone areas in search of stories that matter.Read More