Chalet Hotels Ltd enters into settlement with HAL for Koramangala project

Chalet Hotels Limited has arrived at a settlement with HAL in connection with cancellation of NOC for height permission in respect of its Residential Project at Koramangala, Bengaluru. This is a significant milestone towards resolution of the long-standing litigation and work on the project is expected to recommence in the near future. Further information in this respect is detailed below.

Pursuant to the above regulation in connection with the cancellation of NOC (NOC dated October 28, 2011) issued by HAL for height permission for the Koramangala Residential Project of the Company, the company has the below updates:

- the Company had filed Writ Appeal No. 704 of 2020 and HAL had filed Writ Appeal No. 397 of 2020, before the Single Bench of the Hon`ble Karnataka High Court challenging the order dated May 29, 2020 passed by the Hon`ble Karnataka High Court.

- the Company and HAL after discussions have on October 22, 2021, signed terms for an amicable settlement of all the disputes between the parties for filing in Court and obtaining orders, as per which: i. the Company shall undertake demolition of already constructed structures above 932 meters Above Mean Sea Level 'AMSL' of existing structures. The Company shall not modify / alter / renovate or develop the existing buildings/apartments upto 932 meters in any way until demolition of structures above 932 meters and issuance of fresh NOC by HAL.

ii. Upon intimation of completion of demolition, HAL has undertaken to issue the NOC within 7 days from receipt of the application, as per the regulations.

iii. the Company has accepted the site elevation of the property at 892.41 meters ('AMSL') basis which fresh NOC shall be granted by HAL for construction upto 932 meters AMSL.

On filing of the settlement terms in Court and passing of the Order by the Court and upon receipt of the NOC from HAL, the Company will take further steps towards application for revised building plans and other statutory approvals.

Customers who wished to continue in the project have executed Supplemental MOUs with the Company, with revised terms consenting to the revised development plans, subject to modification orders to be passed by the Court and applicable regulatory approvals. All other customers (who desired to exit) have been refunded / are in discussions with respect to refund of the amounts.

Shares of Chalet Hotels Limited was last trading in BSE at Rs. 237.80 as compared to the previous close of Rs. 244.75. The total number of shares traded during the day was 20191 in over 1245 trades.

The stock hit an intraday high of Rs. 251.30 and intraday low of 235.80. The net turnover during the day was Rs. 4878772.00.

Source : Equity Bulls

Keywords

ChaletHotels INE427F01016 Koramangala ResidentialProject Bengaluru Settlement