Aviation Ministry reviews Centaur Hotel lease to DB Realty

Our Bureau New Delhi | Updated on February 15, 2011

The Ministry of Civil Aviation is reviewing the contract given to DB Realty by Air India for managing the national carrier's hotel, Centaur Hotel, in Srinagar.

“After certain facts about DB Realty were brought to notice by the media, we have decided to review the deal. The management contract given to DB Realty is under review,” said Mr Naseem Zaidi, Secretary, Ministry of Civil Aviation, on Monday.

The deal was finalised in September 2010 by Air India's subsidiary, Hotel Corporation of India. The company gave a lease for 33 years to DB Realty for managing Centaur Hotel in Srinagar. The lease is for the 251-room hotel that has a view of the Dal lake. The Jammu and Kashmir Government is a co-owner of the property.

On September 23, Centaur Hotel's employees challenged the deal in the J&K High Court on the grounds that it amounted to privatisation. Mr Zaidi said that the matter is already under stay and hence the review process of the contract is still going on.

The DB Realty's Managing Director, Mr Shahid Balwa, has been arrested by the CBI for his alleged role in the 2G spectrum scam.

Published on February 15, 2011

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