Dreams going sour for Gurgaon’s cultural centre
The city’s cultural hotspot — Kingdom of Dreams — has failed to regularly pay rent to the Haryana Urban Development Authority (Huda).india Updated: Jan 05, 2012 01:17 IST
The city’s cultural hotspot — Kingdom of Dreams — has failed to regularly pay rent to the Haryana Urban Development Authority (Huda).
The land on which Kingdom of Dreams was set up was leased by Huda.
According to the pact with Huda, the promoters owe the agency about Rs7.5 crore as rent.
Huda administrator Praveen Kumar said, “We have raised the issue with Kingdom of Dreams management. We will serve them a notice, if needed.”
Meanwhile, the management has expressed its inability to pay the rent.
According to its managing director, Anumod Gagan Sharma, Kingdom of Dreams is running into severe financial losses.
Sharma said he had made many representations to Huda chief administrator DPS Nagal to relax the rent amount.
According to the pact, the development authority is to receive Rs36 lakh every month as rent.
“The initial estimated cost of the project was R40 crore but the actual cost scaled up to R300 crore. We have been requesting the authority to give us a two-year rent-free period to make up for the cost escalation,” said Sharma.
He also said nearly Rs5 crore has been paid to Huda as rent till now.
The management has not been able to attract great crowds.
“Many people consider Kingdom of Dreams to be another multiplex where they could buy tickets at Rs200. Actually we are a cultural entertainment hub with a lot to offer. They find our entry ticket rate of R750 very costly,” he said.