Mauritius | Real Estate

March 27, 2013

Hotel Development Scheme: Rs 600 m to the Claimed Rodrigues Regional Assembly

The Rodrigues Regional Assembly (RRA) faces a claim of Rs 600 million in the Supreme Court for refusing to approve a hotel project Ecorod Ltd firm. It intends to build 25 bungalows in Saint-François.

Ecorod Ltd., located in Ebene, had started a hotel project in Rodrigues in 2003. In a written complaint by Mr Dev Cowreea, she explains that the RRA has agreed to grant a lease of 19 years to realize his project to build 25 bungalows on a land of 13, 512 square meters. It was also agreed qu'Ecorod would relocate the madam of a handicraft shop that was on the ground with the consent of the latter.

According Ecorod, a condition of the lease stipulated that the work should be completed 36 months after signing the contract. However, Ecorod states in its complaint that the RRA has acted in bad faith by assigning the Building and Land Use Permit February 15, 2011, almost three years after the signing of the contract to obtain the lease. The firm claims to have suffered serious harm despite having obtained an extension until 14 February 2013 for his project.

Ecorod Ltd also stresses that it has made a request to the RRA to amend its draft response to the introduction of a Hotel Development Scheme by the government. His request was accepted at first. However, the complainant alleges that four months later, the Regional Assembly has decided to review its policy on Hotel Development Scheme and, at the same time, decided not to approve the amendments to the original draft. According Ecorod Ltd, the RRA has indicated that the project was in step with the future development of Rodrigues.

The decision of the RRA, according Ecorod Ltd, is a delaying tactic to prevent complete the work by the deadline and cause the termination and cancellation of the lease it held. "By a letter dated the 29 th of January 2013, the Defendant has claimed to cancel the Lease de plein droit on the grounds that the special condition stipulated in clause 23(a) thereof has not been complied with" says Ecorod. It also stresses that the Building and Land Use Permit has been revoked by the RRA.

The firm says in its complaint had already incurred expenses of Rs 25, 652, 107. In addition, she explained that developers, investors and financial institutions involved were committed to completing this project safely hotel.

Ecorod Ltd claimed a perpetual injunction order to cancel the revocation of the lease and the Building and Land Use Permit by the RRA. The complainant also claimed damages of Rs 600 million.

 

 

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