Lulu group decides to exit land deal with port

For some undisclosed reason, the LuLu group decided to exit the land deal it entered into with the Cochin Port Trust some years ago.

According to the deal, the group took 26 acre land on Bolghatty island from the port trust on a 30-year lease.
The port trust leased the land to the group to build a convention centre and associated facilities. However, the group reportedly planned to build 572 serviced apartments on the land.

Following the decision to exit the project, the group demanded the port to repay Rs 71 crore paid as upfront premium for land leased.

Though the business group has demanded its money back, the lease deed clearly states that the amount is not refundable.

The port feels that the group’s decision to withdraw unilaterally from the deal and its demand for repayment of the lease money had no precedent. The port authority has sought a legal opinion on the matter.

The Board of Trustees of the port is expected to discuss the issue at its routine meeting. If the group wants to withdraw unilaterally, it will have to bear the liability unless it secures a court directive to the contrary, the board member said on the demand that the lease money should be paid back.