State cancels land lease of DLF Ltd
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The state government on Saturday issued the orders, cancelling the lease of 24 acres and 23 guntas of land at Moosapet to the DLF Building India Private Limited, New Delhi. The market value of the land is estimated at Rs 300 crore. The DLF has failed to set up an integrated mega agricultural hub in the leased land at Moosapet in Balanagar mandal of Ranga Reddy district and did not pay 5 per cent of the market value in annual lease rent with the annual escalation of 5 per cent over the previous year amount for Rs 3,96,47,670 (over Rs 3.96 crore).
The land at Moosapet village belongs to the Hyderabad Metropolitan Development Authority (HMDA), which took back the possession of the land on March 16, 2012. A senior official at the municipal administration department said the government cancelled the lease based on the HMDA commissioner's letter stating that M/s DLF Building India Private Limited, in violation of its agreement, had failed to set up the agricultural hub, that it had not paid lease rental. The land was allotted to the DLF in August 12, 2008.
The government had permitted the HMDA to lease its land for setting up an agriculture hub for a period of 33 years on the payment of 5 per cent of the market value as an annual lease rent with the annual escalation of 5 per cent over the previous year amount. The company having failed to pay the lease rentals, the HMDA issued a notice to M/s DLF SBPL Developers Private Limited, directing it to remit the lease rental amount of Rs 3,96,47,670 failing which action would be initiated for the cancellation of the lease deed as per the conditions. Despite it, the lessee had failed to remit the lease amount to the HMDA, according to the G.O. issued on June 30, 2012.
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