SHILLONG: Urban Affairs Minister R.V Lyngdoh said action would be taken against the firm that entered into an agreement with the department to construct a five star hotel on Jail Road if it had defaulted in executing the project.
A delegation of HNYF that met the minister on Tuesday stressed on the need for the state government to take over the project.
Lyngdoh said he would go through the agreement before initiating action.
Earlier, the minister had favoured the government taking over the project following media reports that the firm had defaulted in payment of rental.
HM Cements, which signed an MoU with the Urban Affairs Department to construct and run the hotel on a PPP mode, had defaulted in the payment of rental worth over Rs 1 crore to the Shillong Municipal Board.
HM Cements had planned a tie-up with Marriott Group of Hotels, USA, to run the hotel.
In a letter addressed to the minister, the HNYF said when the agreement was made with HM Cements, HNYF had written to then Urban Affairs Minister Ampareen Lyngdoh and East Khasi Hills Deputy Commissioner Jopthiaw Lyngdoh citing violation of the Land Transfer Act as the procedure of leasing out the Government property was done without obtaining sanction for lease either from the state government or from the legislative assembly.
HNYF also said it has been opposing the project since 2011 because there was alienation of land as it was leased out to HM Cements for 30 years.
The pressure group also apprised the minister that besides defaulting in payment of rental, the building is a security threat to Shillong jail.
