Oberoi Realty’s joint venture deal to buy Centaur Hotel here from Ajit Kerkar’s V Hotels has fallen through, as an arbitrator has terminated the agreement between buyer and seller.
Siddhivinayak Realties Pvt Ltd (SRPL), a 50:50 joint venture between Oberoi and the promoters of DB Realty, had entered into an agreement with V Hotels on March 31, 2005, to buy the Centaur Hotel in Juhu Beach. Subsequently, due to a dispute between V Hotels and SRPL, the former referred it to arbitration. The arbitrator’s award on July 13 terminated the contract, Oberoi said in statement to the exchanges.
The hotel was bought over by Ajit Kerkar’s companies, Tulip Hospitality and Cox & Kings, in early 2000 for around Rs 150 crore. The arbitrator has said V Hotels was liable to refund around Rs 73 crore, which was initially paid by the JV company to V Hotels, to SRPL within 90 days.
Oberoi has said SRPL has filed an arbitration petition in the high court here, seeking an injunction against V Hotels. “SRPL is also continuing to review the award and will pursue such other legal recourse/remedies as may be available,” the company said.
The Oberoi Realty stock lost 0.21 per cent to close at Rs 234, Tulip Star Hotels gained five per cent to close at Rs 141.75 and Cox & Kings gained 6.8 per cent to close at Rs 205.95.