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After Park Plaza row, another hotel in dock

After the Park Plaza, another upcoming five star hotel is in dock as the Estate Office of the UT Administration has started the process to auction the property of Joy Hotel situated in the Industrial Area.

The Estate Office has cancelled the lease of the hotel after hotel owners failed to pay the installment of the conversion fees. The Estate Office has also asked the Engineering Department to make the assessment of the structure and the land of the hotel so that it could fix the reserve price of the hotel for the auction. Sources said while the cost of the building had been assessed at around Rs 45 crore, the cost of the land was yet to be assessed.

The hotel is also a defaulter of the loan of various banks. Punjab National Bank (PNB) and the Tourism Finance Corporation of India (TFCI), had tried to sale the hotel in 2014 to recover its dues of Rs 57 crore. Both financial institutions had earlier pasted deemed possession notices outside the site under construction in plot No. 33-34 in the Industrial Area, Phase II.