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The Tamil Nadu Tourism Development Corporation (TTDC) has taken possession of a private star hotel near Khajamalai in Trichy after the hotel failed to clear its lease dues. The property, leased to SRM Hotel since 1994 for 30 years, had an outstanding lease amount of INR 38 crore at expiry. Legal proceedings delayed possession, with the hotel obtaining interim relief from the Madras High Court and approaching the Supreme Court. Directed to pay INR 20 crore, the hotel defaulted, prompting TTDC officials to assume control and start the process of gradual surrender.
The Tamil Nadu Tourism Development Corporation (TTDC) recently took possession of a private star hotel near Khajamalai in Trichy due to unpaid lease dues. The hotel, leased on TTDC land since 1994 for a 30-year period, had a lease expiry in June 2024, with total dues of INR 38 crore. Advertisement
Efforts by TTDC to reclaim the property last year were temporarily blocked when the hotel management obtained interim relief from the Madras High Court. The hotel subsequently approached the Supreme Court and was directed to pay INR 20 crore. After the payment was not made, senior TTDC officials, accompanied by revenue authorities, took control of the hotel complex.
Developed on 4.7 acres, the property's annual lease rent was fixed at 7% of the market value. The total lease amount for 30 years was initially estimated at INR 47.9 crore, of which partial dues were cleared in 2024. TTDC placed a notice board indicating possession and instructed the hotel management to gradually vacate the premises.
Officials emphasized that the process is being handled systematically, giving the lessee time to surrender the property entirely, while ensuring that TTDC safeguards its land assets effectively.
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