A two-acre plot sub-leased by Tata Steel to Delhi-based realtor Ashiana Housing for a four star hotel and shopping complex in Jamshedpur has landed in trouble.
The Jamshedpur Notified Area Committee issued a notice to the developer on September 21, asking it to stop construction work with immediate effect and maintain status quo on the land.
“The order came in from the Jharkhand government as they found some anamolies in the sub-leasing contract done by Tata Steel to Ashiana,” a government official from Jamshedpur told FE. “As of now there is a status quo on the matter and there will be an inquiry initiated by senior government officials to probe the matter,” he said, without detailing the issues in the contract.
Ashiana Housing, listed on the Bombay Stock Exchange and National Stock Exchange, informed the exchanges on Monday about the stop work notice and said the company had ?initiated construction of the shopping complex-cum-hotel, Marine Plaza, on the aforesaid land with all requisite approvals in place”.
When contacted, Ashiana officials said that while the company has received the notice to stop construction work, it is unaware of the discrepancies in the contract.
?We have not been told the nature of issues that the Jharkhand government has found in the contract and we have not heard from Tata also on the matter,? said Varun Gupta, director, Ashiana Housing.
Gupta said that Tata Steel is the principal holder of the land and it was sub-leased for a 30-year period by Ashiana. Tata Steel did not respond to queries sent till the time the story went to press.
As per the plan, the land is to house a 120 to 140-room four star category hotel Hyatt Place, of the global hospitality chain Hyatt. The construction had just reached the plinth level, he added.
“The matter is in initial stages, but we are exploring legal options,” Gupta said.