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Home  » Business » Divestment of ITDC hotel challenged

Divestment of ITDC hotel challenged

Source: PTI
February 12, 2003 15:09 IST
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Refusing to recognise the sale of ITDC-run Laxmi Vilas Hotel in Udaipur to a private investor, the estate officer of the hotel has maintained that the title of the property vests with the Rajasthan government.

The estate officer, performing as a revenue court had on Tuesday served an eviction notice on Bharat Hotels Limited that had purchased the property under the divestment process in February last year, official sources said on Wednesday.

The estate officer held that the Laxmi Vilas Hotel was the property of the state government and hence it cannot be sold by the central government.

The official gave his ruling on a petition filed by two local activists Rajendra Razdan and Amba Lal Nayak who opposed the sale of the prestigious hotel, which had once served as the residence of former Udaipur rulers, sources said.

The two activists had earlier filed a public interest writ petition before the Rajasthan high court pleading that since the hotel property belonged to the state government it cannot be sold by the Centre.

The high court had asked them to file a suit before the estate officer to settle the dispute over the property's title.

The new owners have been asked to hand over the property to the state government immediately and pay rent for the period of their occupation, sources added.

However, the hotel sources said an appeal would be made against the ruling before an appropriate court.
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