AAI shows Hotel Leela the door over non-payment of dues

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26 Aug, 2025 12:21

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Swaraj BaggonkarMoneycontrol BureauThe Leela, one of the first luxury airport hotels in Mumbai, will have to shut down as the Airport Authority of India (AAI) has commenced eviction proceedings against the property which rests on the land leased by the airport operator. The Nair-family promoted Hotel Leela Venture, which owns and runs the property located close to the Chhatrapati Shivaji International Airport, defaulted on paying arrears to the tune of Rs 258 crore to AAI. As a result, AAI has terminated the land contract with the hotel company. “M/s. Hotel Leela Venture Ltd is running a five-star Hotel on the plots of land leased to them by the Airports Authority of India near CSI Airport, Mumbai. The total area of plot allotted by AAI is 29000 sqm. through different agreements. Since they had defaulted in payment and also for other violations in terms of the agreements executed between the Airports Authority of India and M/s. Hotel Leela Venture Ltd. and after prolonged litigations, AAI Board decided to terminate the contract and accordingly notices were issued for payment of dues and to handover the possession of the property latest by 31.10.2016”, AAI said in a statement. The airport authority has also begun proceedings for eviction. “Since they had failed to handover the possession of the property and pay the outstanding dues to Authority within the stipulated date, the eviction and recovery proceedings of dues have been commenced by the Eviction Officer and Show Cause Notice  have been issued for appearance on 16.02.2017 under the provisions of AA Act 1994”, the statement said.  In July 2016, the Delhi High Court directed the hotel company to pay AAI the said amount following which the company decided to seek legal counsel. Attempts to reach the company did not elicit a response immediately.  The Mumbai asset is Hotel Leela Venture's first property erected by the company’s late chairman C P Krishnan Nair. The hotel is also one of the better-performing properties of the company.