Mumbai-based DB Hospitality has defaulted on lease rentals and common area development fees around R95 crore for plots to build hotels at the Delhi International Airport (DIAL). The company is a sister concern of real estate developer DB Realty promoted by Vinod Goenka and Shahid Balwa, two key accused in the spectrum scam.
Sources said DB Hospitality was required to pay the private airport operator R400 crore in rental and land development fees, among others. After paying three installments on time, DB sought additional time to pay the last tranche of around R95 crore. ?The issue came up at the DIAL board meeting recently,? sources in the airport operator said.
As part of the plan to raise revenues through non-core areas and offer facilities around the airport in line with global standards, DIAL had sub-leased 14 plots in its hospitality district to developers to build and manage hotels. DB had won two plots through competitive bidding.
?Following the delay, the airport operator has said it will charge 4% interest on payment due. The DB Group has been finding it difficult to pay since October,? industry sources said.
When contacted, a DIAL spokesperson refused to go into the specifics of the payment delay, merely stating: ?We have sub-leased 14 plots to various developers for development in the hospitality district. All the plots have been awarded through international competitive bidding and the plot to DB Group was awarded in 2009. We regret we are unable to comment on the transaction any further as we are bound by the confidentiality clauses related to the agreement in the subject matter.?
A DB Hospitality?s spokesperson said: ?DB Hospitality is constructing a hotel on a 7.7-acre property leased from DIAL. The majority of payments have already been made. A minor last installment is due, which is in the process of being paid along with interest as mutually agreed with DIAL. The relevant activities for executing the project are underway. DB Hospitality does not envisage any issues in executing and completing the project.?