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Bombay HC restrains Ajay Kerkar of Tulip Star from creating third party rights on premises

Bombay High Court (HC) recently restrained Ajit Kerkar, Managing Director and CEO, Tulip Star Hotel Limited, from creating any third-party rights on 2.5 lakh sq ft of the premises or changing the facade of the hotel, stated a report by Reeba Zachariah & Shibu Thomas in The Times of India.


Kerkar had acquired the hotel through the government's privatisation programme in 2002, for Rs 172 crore. While initially he wanted to run the hotel himself, financial woes-the acquisition was largely funded through debt-started to stretch the hospitality veteran's plans. To address this, in 2003, Tulip entered into a joint venture with developer Nirmal Lifestyle to build retail space covering 2.5 lakh sq ft of the hotel premises.

"The court has upheld our rights in the matter," Dharmesh Jain, Managing Director, Nirmal Lifestyle stated.
 
As per the agreement between Nirmal Lifestyle and Tulip, the realty player was supposed to pay about Rs 31 crore in instalments, while Tulip, in turn, had to obtain approvals from lenders who it owned over Rs 129 crore.