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The Supreme Court on Monday dismissed an appeal by Hotel Leela Venture Ltd and asked them to pay Rs258 crore to the Airport Authority of India (AAI). Photo: Mint
The Supreme Court on Monday dismissed an appeal by Hotel Leela Venture Ltd and asked them to pay Rs258 crore to the Airport Authority of India (AAI). Photo: Mint

SC dismisses Leela Ventures plea, directs it to pay Rs258 crore to AAI

Hotel Leela had challenged an order of the division bench of the Delhi high court asking them to pay the amount to the Airport Authority of India (AAI)

New Delhi: The Supreme Court on Monday dismissed an appeal by Hotel Leela Venture Ltd and accordingly asked them to pay Rs258 crore to the Airport Authority of India (AAI) regarding land leased by the airport operator near the Mumbai airport.

Hotel Leela had challenged an order of the division bench of the Delhi high court asking them to pay the amount to AAI.

Under a 7 November 2016 order of the division bench of the Delhi high court, Hotel Leela Venture was directed to pay Rs258 crore to AAI regarding land leased by the airport operator near the Mumbai airport.

The dispute relates to payment of minimum guaranteed royalty amount on 11,000 square metres of land leased by the AAI adjacent to the existing hotel of the company in Mumbai for construction of another hotel.

On 18 July, a single judge of the Delhi high court had directed Leela Venture to pay up arrears of Rs258 crore to AAI as royalty for the land leased to the hotel authorities. Hotel Leela Venture challenged this order which was dismissed by the division bench. They subsequently moved the Supreme Court.

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