• October 4, 2024

Government Attempts to Seize SRM Hotel in Tiruchi Amid Lease Dispute, Court Grants Interim Relief

On Friday, Revenue and Tourism officials attempted to take possession of the SRM Hotel premises on Race Course Road in Tiruchi, operated by former MP and Indhiya Jananayaga Katchi (IJK) founder Paarivendhar. This action followed the expiry of a 30-year lease agreement with the Tamil Nadu Tourism Development Corporation (TTDC). However, hotel representatives and IJK workers opposed the move.

In a related development, Justice G.R. Swaminathan of the Madurai Bench of the Madras High Court granted interim relief to SRM Hotels Pvt. Ltd. until 4 p.m. on June 18. He noted that the lease agreement stipulated renewal upon government direction, but there was no clear indication of any government decision. “Since no order has been produced before me, I am inclined to grant interim relief for four days. I make it clear that unless I specifically extend the interim order, it will automatically lapse,” the judge stated.

The State government asserted that it had decided not to renew the lease and had taken possession of the property on the morning of June 14. The judge considered the petitioner’s counsel’s submission that the hotel had 80% occupancy.

TTDC Managing Director C. Samayamoorthy indicated that ₹47.93 crore was fixed as the lease amount, but the hotel management had paid only ₹9.08 crore since 1994. The agreement required that the land and buildings be handed over to the TTDC on the lease’s expiration. “A notice was served to the hotel management on May 5 asking it to settle the pending dues (₹38.85 crore) immediately,” he said.

Earlier, a team of officials, led by District Revenue Officer R. Rajalakshmi and accompanied by police, asked the hotel management to vacate the premises immediately and began inventory counting. A heated argument ensued among the officials, hotel representatives, and IJK workers, who cited the ongoing court case. Subsequently, the officials and police left upon learning that the court had granted an injunction.

Collector M. Pradeep Kumar told The Hindu that the land, measuring 4.70 acres, was leased to SRM Hotels on June 14, 1994. Notices had been served to the hotel management regarding the lease’s expiration and pending dues.

SRM Hotels, however, stated it had requested a 10-year lease extension from the Collector and the TTDC, arguing that the hotel began operations more than five years after the land was handed over. Two suits were pending before courts in Tiruchi. The hotel attributed political motives to the action, noting that Mr. Paarivendhar had contested in the recent Lok Sabha polls on a BJP ticket.

### Govt. Move Criticised

BJP State unit president K. Annamalai criticized the DMK government in Chennai for not responding to several extension pleas filed by the hotel management. “The attempt by the State government to close the hotel when a case regarding the issue is pending before the court amounts to contempt of court,” he alleged. He drew parallels to an incident 20 years ago when the DMK government demolished part of a wedding hall owned by DMDK founder Vijayakant for not forming an electoral pact. “The attempt by the ruling DMK government to close SRM hotel is on similar lines. It shows that the DMK has not changed,” he said.

Tamil Manila Congress (Moopanar) president G.K. Vasan urged the State government to refrain from acting against the hotel while the lease issue case is pending in court. He warned that any action by the TTDC would create unease for the hotel’s guests.

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