Srinagar: The Jammu and Kashmir Tourism Development Corporation Limited (JKTDC) has terminated the lease of a shop at Hotel Heemal, Srinagar, over alleged violations of the licensing agreement, including subletting and unauthorized partnerships with liquor business operators.
The action follows reports that the shop, originally allotted for legitimate business, was being misused in violation of the agreement.
As per an order issued by the Company Secretary, JKTDC, as per news agency JKNS, the shop was allotted on a lease basis to one Narayan Dass in 2017 in compliance with an arbitration award. The agreement, executed in July 2017, was valid for 10 years, until June 2027. However, it came to JKTDC’s notice that the licensee had either sublet the shop or was operating it in partnership with third parties involved in the liquor business, which was strictly prohibited under the agreement.
The order states that the licensee had agreed not to change the form or ownership of the business directly or indirectly.
Furthermore, the agreement explicitly prohibited the assignment of the business to any other individual or firm. Any violation of these conditions would lead to automatic termination of the lease.
It further reads that, as per Clause 22 of the agreement, JKTDC retained the right to inspect the shop at any time and cancel the agreement in case of violations.
Consequently, the allotment in favor of Narayan Dass was revoked with immediate effect, and he was directed to surrender possession of the shop to JKTDC, it reads.
Meanwhile, in a communique issued by the Managing Director, JKTDC, to the Excise Commissioner, it was requested that before issuing any future excise liquor licenses for shops at Hotel Heemal, an NOC must be obtained from JKTDC to ensure compliance with the original licensing terms.
The communique confirmed that three shops at Hotel Heemal had been allotted on a license basis in 2017 strictly for “legitimate” business activities. However, it was discovered that the licensees had either sublet their premises or partnered with third parties holding liquor licenses.
It detailed that the licensee of Shop No. 1 failed to produce a valid liquor license, while the liquor licenses for Shop No. 2 and Shop No. 3 had been issued in favor of different individuals, indicating unauthorized business transfers, it reads.
The communique further reads that, as per Clauses 5 and 6 of the agreement, no changes to the business structure or ownership were permitted, and any violation would lead to termination of the agreement. (JKNS)
