Gurgaon: KPMG roped in to find solution of Kingdom of Dreams lease row
A three-member panel has recommended that a fresh lease bid be invited for the Kingdom of Dreams in Sector 29gurgaon Updated: Dec 19, 2017 22:55 IST
The three-member committee, set up by the Haryana government, has recommended that a fresh bid should be invited for the city’s landmark entertainment hub “Kingdom of Dreams (KoD)” in Sector 29 after the existing operator, the Great Indian Nautanki Company (GINC), failed to clear its dues amounting to Rs 62.5 crore.
The Haryana government has roped in financial consultant KPMG, a knowledge partner of the industries department, Haryana, to find a financially viable solution for KoD, which is owned by the Haryana Urban Development Authority (Huda).
The committee has Rajan Gupta, Sudhir Rajpal and Sanjeev Kaushal, all senior IAS officers, as its members.
Huda had given 5.66 acres on a 15-year lease to the GINC for developing an entertainment. The GNIC was to pay Rs 14 lakh a month as rent. After five years of operations, the GINC stopped paying the rent in 2014, claiming that exemption under certain clauses.
Since then, Huda and GINC have been embroiled in a legal battle over cancellation of lease at the Punjab and Haryana high court. The court is yet to pronounce a judgment in the matter.
The GNIC owes Rs 44.5 crore in rent to Huda , Rs 15.41 crore in VAT and Rs 2.61 crore in entertainment tax to the state government.
The three-member committee was set up to look into the total outstanding dues of Rs 62.5 crore owed by the GNIC.
Yashpal Yadav, Huda Gurgaon administrator, said, “The committee has recommended a fresh tender for KoD for a lease period of 33 years. The present lease of KoD is for 15 years and it was signed in 2008. The committee also recommended Floor Area Ratio (FAR) extension. To assess all this and the outstanding dues, the KPMG has been appointed to find a financially viable solution and issue a fresh tender.”
“In case GNIC wishes to participate in the new bidding process, it will have to clear all outstanding dues towards Huda, excise and taxation department and other government bodies,” Yadav said.
Gagan Anumod Sharma, managing director, GNIC, said, “We cannot afford to lose Kingdom of Dreams. It is a dream project that we developed for the country and we want to improve it with more facilities if the lease period is extended. The 15-year lease is too short a time to recover money we spent for developing KoD. We have put our proposal before the committee. However, Huda cannot legally call for fresh bids as the matter is pending in court.”
“We are not against the government which wants to revamp KoD, the same as us. Now, KPMG has been roped in to find a financially viable solution,” he said.
First Published: Dec 19, 2017 22:55 IST