May face delay in taking over Park Hyatt Goa as existing promoter has moved court against the sale of the 250-key property by IFCI
ITC will have to wait before it checks into its newest acquisition in the hospitality sector, a lucrative 45 acre property in Goa.
Blue Coast Hotels, the existing promoter, has moved Bombay High Court on a possession notice issued by the district magistrate of Goa, and it may delay the process of handing over the 250-key Park Hyatt Hotel at Cansaulim to ITC by IFCI, which had recently conducted an auction of the property after its promoters defaulted on repayment of loan.
"We understand there is now a stay order on the possession till March 23. Hyatt is operating the hotel without interruption and guests are coming in normally," an official at the Park Hyatt Goa told dna.
The hotel-to tobacco conglomerate ITC on February 23 said it has been declared successful bidder for Park Hyatt along with land and built-up area.
"Blue Coast had filed a writ petition at Bombay High Court challenging the possession notice issued by the District Magistrate Goa. The division bench has issued a status quo order in favour of the company," Blue Coast said in a statement. ITC refused to comment saying the matter is sub-judice. Sources, however, said ITC interprets "status quo" in its favour.
The asset were put up on auction by IFCI under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.
IFCI confirmed the deal value at Rs 515.44 crore and that ITC has already paid 25%, or about Rs 129 core. The balance was supposed to be paid within 15 days or by Tuesday. But with Blue Coast now moving court, the deal wouldn't get closed any time soon.
The 250-key five-star deluxe Park Hyatt Goa Resort & Spa, promoted by PL Suri of Blue Coast, at Arossim beach in Goa has remained a popular destination, winning as recently as in 2014 the Conde Nast Traveller's award for Favourite Leisure Hotel in India. The deal gives ITC rights over a large tract of land of about 45 acre with a built-up area of 25,800 square metres and 500 metres of beach front.
Following the announcement by ITC, Blue Coast's promoter Suri said the worth of the property including the land and the hotel is not less than Rs 1,200 crore, more than double of what ITC is paying.
Puri's objection was also about how IFCI has tried to take possession of the property despite on-going negotiations between them under which the company had been settling its dues which stood at Rs 135 crore as on September 2013 when IFCI threatened to take possession of the property.
It's doubtful though how long Blue Coast would be able to continue with legally challenging the deal following the sudden demise of Suri, the group's promoter, chairman and managing director on March 1.
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