The Nagpur bench of the Bombay High Court has asked State government and Nagpur Improvement Trust why should Maha Metro pay damages of 19.20 crore to Haldiram’s Foods which had to close down its amusement park Crazy Castle opposite Ambazari lake before its term expired due to construction of metro line?
The high court has also asked the two respondents to file their reply in this connection within four weeks.
The PIL raising the above question was heard before a division bench comprising Justice Sunil Shukre and Anil Pansare. The PIL was filed by social worker Sandeep Agrawal. NIT had handed over the piece of land where the said amusement park came up on BoT basis to Haldiram’s
However, it had to terminate the agreement with the Haldiram’s Food International before the lease expired, as a result of which the Haldiram’s International had to suffer heavy financial losses.
In view of this, NIT has issued a letter to Maha Metro asking the latter to pay damages of 19.20 lakh to Haldiram’s Food International.
NIT issued this letter on February 20, 2020, to which the petitioners have objected on the ground that the agreement to sale has been executed between NIT and D the Haldiram’s Food International and Maha Metro is in no way party to the agreement. Hence, NIT and Haldiram’s should mutually solve this problem, petitioner Sandeep Agrawal has contended.
As the NIT letter is not valid, it is a case of spending public money in the benefit of a private enterprise, the petitioner has contended.
Petitioner did not get copy of committee report A high level committee to sort out the glitches in the lease agreement was set up which submitted its report on February 20, 2020. The letter, quoting this report, has said that it is binding upon Maha Metro to pay damages to Haldiram’s Food International.
However, when the petitioner sought a copy of this report from NIT, it failed to
deliver the same, the petitioners have further argued.