The HCI has returned the security deposit of Rs 11.8 crore to 2007-founded real estate company DB Realty, which the latter had paid at the time of entering into a management contract. The 300-odd employees of the hotel were against the deal while the State Government desired to take it over to expand the infrastructure for high-end tourists. Sources said the scrapping of the management contract with DB Realty would speed up the process for J&K Government’s takeover. The cash-starved Air India has left the property in shambles, missing out on the chance to draw in tourists, employees alleged.
“Yes, the contract (with DB Realty) has been scrapped. There is definitely something good in the offing. We are trying to restore the multi-crore property to its glory and talks with the State Government are on”, HCI Vice President Chetan Kak told The Pioneer from New Delhi.
The HCI has sent a letter to DB Realty announcing its decision to terminate the deal. “There is no alternative apart from terminating the agreement. Accordingly, we are refunding the interest-free security deposit of `10 crore and the minimum guaranteed amount of `1.08 crore. It is clarified that there is nothing left to be paid to you (DB Realty) and your claims against HCI is paid entirely”, the letter reads.
The sprawling property spread over 33 kanals of land, raised as encroachment on a portion of Dal Lake along the Boulevard Road in 1970s, was leased out to HCI for 90 years by then Chief Minister Sheikh Muhammad Abdullah. The hotel is run by local employees, a pre-condition for the HCI. The famous Sher-e-Kashmir International Convention Center (SKICC) is located adjacent to the Centaur Hotel and both properties share the entry gate.
“We are concerned about the hotel’s future and the suture of employees. The State Government must play its role to help us out”, Mufti Iqbal, president of Employees’ Coordination Committee said.
Junior Tourism and Home Minister Nasir Aslam Wani said the Government was serious about not letting Centaur hotel be handed to a third party. “We are a bit relieved. Now we will raise the issue of taking the control of the hotel with HCI and subsequently discuss the issue of regularisation of employees as well,” he said.
However, tourism industry experts say that the takeover of the hotel by the J&K Government would not solve the basic problems. “The hotel needs to be made upmarket and befitting to the requirements of high-end tourists. This cannot be the J&K Government’s cup of tea”, analyst Dr Rafiq said.
“The present state of the hotel is dismal. Rodents scurry around, catering is below average, food is stale and ambience sickening. This can be mended by privatisation alone”, he said. The Tourism industry in Kashmir is suffering acute from a shortage of infrastructure when it comes to delivering premium services. The Centaur Hotel, experts say, has the potential to be developed into a five-star property to cater to the demands. Presently, Srinagar city has the Lalit Grand and the Taj Vivanta cater to high-end clientele.
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