Gujarat Informatics Limited accuses present developers of breach in agreements, all set to terminate master lease
The Gujarat Informatics Limited (GIL) has issued notices to the Creative Infocity Limited (CIL) – the developers of the Infocity complex near Gandhinagar – for termination of master lease and concession agreements inked in 2001 and 2000 respectively.
Sources in the GIL – the government's IT arm – said on Thursday that the termination notices were issued to the CIL on August 12 for “material and contumacious breaches of both the agreements” by the Infocity developers.
In the termination notice, the period of which expires on September 4, the GIL has asked the CIL to handover the entire Infocity project site and also transfer the project assets to the former within 14 days of the termination date. “We may take over the Infocity project from the CIL after September 4,” sources said.
They added that the breaches allegedly committed by the CIL include non-furnishing of development guarantee, non-payment of development expenses, additional construction done on the complex in the absence of a proper land use plan, and non-payment of rent revenue among others.
In its reply, the CIL has, however, refuted the allegation. A senior CIL official said the Infocity developers had already furnished a development guarantee in 2001 and also paid Rs 37 lakh as development expenses to the GIL. The developers had also done construction of commercial, non-commercial and residential structures in the complex as per the approved plans. “We have been regularly paying money to the GIL under the rent revenue sharing formula,” he said.
The official said that the notices issued by the GIL were illegal, because there were no specific provisions made in the agreements to this effect. “The defaults, breaches against us as being alleged by the GIL are false until proved or decided by an arbitrator of the court of law. We have been urging the GIL to appoint an arbitrator, but it has not yet responded to our plea,” he said.
The Infocity developers apprehend that the termination may hamper the process of further developing the project, which may prevent prospective national and international IT companies from setting up their offices at the complex.
“We have already spent over Rs 100 crore on the project, having constructed four IT towers and about 500 residential units for IT professionals on the complex. Already, over 10,000 people are getting employment at the
Infocity,” said an official of the Infocity developers.
He added, “The CIL has decided to challenge the termination notices in the Gujarat High Court.”
The CIL had been given the complex project to develop on a sprawling 150 acres of land on a 32-year lease.
Courtesy : www.expressindia.com
The Gujarat Informatics Limited (GIL) has issued notices to the Creative Infocity Limited (CIL) – the developers of the Infocity complex near Gandhinagar – for termination of master lease and concession agreements inked in 2001 and 2000 respectively.
Sources in the GIL – the government's IT arm – said on Thursday that the termination notices were issued to the CIL on August 12 for “material and contumacious breaches of both the agreements” by the Infocity developers.
In the termination notice, the period of which expires on September 4, the GIL has asked the CIL to handover the entire Infocity project site and also transfer the project assets to the former within 14 days of the termination date. “We may take over the Infocity project from the CIL after September 4,” sources said.
They added that the breaches allegedly committed by the CIL include non-furnishing of development guarantee, non-payment of development expenses, additional construction done on the complex in the absence of a proper land use plan, and non-payment of rent revenue among others.
In its reply, the CIL has, however, refuted the allegation. A senior CIL official said the Infocity developers had already furnished a development guarantee in 2001 and also paid Rs 37 lakh as development expenses to the GIL. The developers had also done construction of commercial, non-commercial and residential structures in the complex as per the approved plans. “We have been regularly paying money to the GIL under the rent revenue sharing formula,” he said.
The official said that the notices issued by the GIL were illegal, because there were no specific provisions made in the agreements to this effect. “The defaults, breaches against us as being alleged by the GIL are false until proved or decided by an arbitrator of the court of law. We have been urging the GIL to appoint an arbitrator, but it has not yet responded to our plea,” he said.
The Infocity developers apprehend that the termination may hamper the process of further developing the project, which may prevent prospective national and international IT companies from setting up their offices at the complex.
“We have already spent over Rs 100 crore on the project, having constructed four IT towers and about 500 residential units for IT professionals on the complex. Already, over 10,000 people are getting employment at the
Infocity,” said an official of the Infocity developers.
He added, “The CIL has decided to challenge the termination notices in the Gujarat High Court.”
The CIL had been given the complex project to develop on a sprawling 150 acres of land on a 32-year lease.
Courtesy : www.expressindia.com