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Oberoi Realty’s Centaur Hotel Deal Terminated

By Anil Das

  • 22 Mar 2016

Oberoi Realty Ltd has said that an agreement signed by Siddhivinayak Realties Pvt Ltd (SRPL) with V Hotels Ltd to purchase the Centaur Hotel property in Mumbai has been terminated by the order of an arbitrator.

SRPL is a 50:50 joint venture between Oberoi Constructions (an Oberoi Realty arm) and Vinod Goenka & Shahid Balwa (co-promoters of DB Realty), who are currently in jail for alleged involvement in the 2G telecom scam.

Following the termination of the contract, V Hotels is liable to repay Rs 73 crore within 90 days. It was the initial amount paid by SRPL for the deal.

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SRPL had entered into an agreement with the firm controlled by Ajit Kerkar (former Tata Group executive who had an acrimonious exit from Indian Hotels more than a decade ago) in March, 2005, to purchase the Centaur Hotel property for around Rs 300 crore.

The case has been pending for a long time between the two parties. While the arbitrator has terminated the deal, SRPL has also filed an application at the Bombay High Court, seeking an injunction against V Hotels.

Although unrelated, this comes soon after another project related to .

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