KoD obtains stay order on HSVP lease termination

Gurugram: The Kingdom of Dreams (KOD) administration on Friday stayed the notice to terminate the lease agreement issued by the Haryana Urban Vikas Pradhikar (HSVP). HSVP seals cultural hotspot in Sector 29 for non-payment of dues 100 crore on Friday.

Kodi approached the court on Friday as soon as HSVP teams sealed the main gate. Additional District Judge Rajeev Goel, Special Commercial Court granted an ex-parte interim injunction in favor of Kodi.

“After considering the contentions thus made and perusal of the file, till the next date of hearing, it is directed that the respondents shall not cause any interference with the petitioner’s possession of the auditorium building in any manner except in accordance with law. The order is subject to compliance with Order 39 Rule 3 CPC, which shall be made forthwith,” the court said. The order said.

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

“We have applied on Friday for an ex-parte interim injunction against the petitioner’s dispossession of KOD’s auditorium building in Sector 29. We have argued that the respondents are bent on taking over the building by force,” said lawyer Vinay Shukla. For KoD. He said the HSVP has closed the cultural facility on the injunction issued by the court.

According to a senior KoD official, the HSVP issued a notice on July 6, terminating the lease agreement signed on February 15, 2008. He stated that he did not receive any notice to the management. “The lease is valid till July 29, 2024. HSVP officials visited KoD again on Friday night and closed the rest of the gates despite knowing that we have been given an interim solution. They are harassing on purpose,” he said.

On the other hand, HSVP officials said that they are not aware of any interim stay order. “The property is in our possession and we have already concluded the lease. After receiving the notice we will submit our reply to the court. We acted in accordance with the law and followed due process. At the time of sealing, we asked the administration to provide the lease documents in the presence of the duty magistrate, but they failed to do so,” said Estate Officer -II, HSVP Sanjeev Singla.

KoD, operated by the great Indian Nautanki company, was initially due 42 crore to HSVP, but the amount was compounded due to non-payment of dues, officials informed. Kodi was issued several notices for non-payment of dues and the authority was on the verge of shutting down before the governing body submitted a proposal seeking help from the state government. One such notice was issued in September last year, when HSVP asked KoD developers to clear the total rent collected. 107 crore including interest.

HSVP leased 5.66 acres (auditorium site and building) in Sector 29 to KoD in 2008 for 15 years. Monthly rent 36 lakhs with the condition of increasing by 10% every three years. In 2014, the company denied payment and sought immunity. As part of the exemption, the developers sought extension of the lease period from 15 to 99 years, extension of rent moratorium from 12 to 44 months (from the date of allotment) and permission to sub-lease the land.

Officials said the KOD failed to pay 108 crore as rent, HSVP has imposed fines only 100 crores. Officials said that there is also an allegation of encroachment of 1.5 acres of government land.


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