HYDERABAD: Three months after the expiry of lease on Yatri Nivas, prime property at Secunderabad belonging to Andhra Pradesh Tourism Development Corporation, suspense continues over its renewal.

Steep hike

The property was given on 10-year lease to Amogh Hotels Ltd., on June 11, 1996 and the term ended on June 10 this year.

In view of the steep hike in the value of the property, even as APTDC Board met and felt the renewal of contract clause in the Joint Management Control agreement could not implemented in toto, a petition was filed by a contender in the High Court seeking direction to APTDC for issuing fresh tender notification to enable others to submit their tenders.

Petition dismissed

While the High Court, according to sources, dismissed the petition last Saturday, the Government is yet to decide on the recommendations submitted by the Board for renewal of lease on fresh terms.

The property that was originally given on a monthly rent of Rs. 2 lakhs is now yielding Rs. 3.1 lakhs and is worth much more considering the present market value.

The lessee offered a rental of Rs.7.5 lakhs for renewal of lease which the 12-member board in its meeting in May this year declined on the ground that it was not reflective of market price.

The present value of Yatri Nivas with an extent of 5,300 sq.yards is estimated to be between Rs. 19,000 to Rs. 50,000 per sq.yard.

Business share

Subsequently, the lessee who developed Yatri Nivas into a prime property, made a request for negotiating the price again.

The Board which met again reportedly decided on a rental value of Rs.17 lakhs a month reflective of market price.

Though the renewal clause in JMC mentioned 20 per cent hike in the rent and two per cent business share, the board decided on the new figure based on prevailing market value and sent it to the Government, sources said.

Report sought

The Government had also sought a detailed report from the Board on the lease agreement and it was furnished to it. Meanwhile, pending disposal of petition, the lease was being renewed every month so far.

With the court now dismissing the petition, the Government sought the advice of Advocate General on the recommendation of the board, it is learnt.

The Board is awaiting Government's response to their recommendations for further action on lease agreement.

Printer friendly page  
Send this article to Friends by E-Mail