Crowborough project
SHILLONG: Meghalaya Tourism Development Corporation (MTDC) chairman David Nongrum informed that the State Law department is currently examining a proposal to set up a Special Purpose Vehicle (SPV) as proposed by the lessee of the jinxed Crowborough Hotel Project.
“We have sought the assistance of the Law department since the agreement with the lessee does not have provision for any SPV for the project,” Nongrum said on Sunday.
He said that they would take a call on the issue once the Law department gives its views.
Though the expected completion date of the project as per the agreement was September 2013, the lessee has now been granted extension till August 2014 to make the hotel functional.
The hotel with an area of 28,869 square feet was leased out to Lessly Shylla, a coal trader from Jaintia Hills, on May 28, 2008 for a period of 33 years.
The project which started in the 1980s was delayed due to various hurdles including court cases.
The lease rent for four quarters, which is yet to be paid by Shylla to MTDC, has accumulated to over Rs.1.91 crore.
Moreover, due to the delay in completion of the project the MTDC is losing additional revenue in terms of service tax, excise and luxury taxes, which amount to over Rs.1 crore.
