The fifty-fifty arrangement between the two realty giants DB Realty and Oberoi Realty to acquire Centaur Hotel in Mumbai was terminated by an arbitrator’s decision. The actual agreement was signed between Siddhivinayak Realties Pvt Ltd (a 50/50 JV between Oberoi Constructions, a division of Oberoi Realty) and V Hotels Ltd. The outcome to this termination is that V Hotels will have to shell out Rs. 73 crores within 90 days, the amount initially paid by Siddhivinayak for the deal. Siddhivinayak had an agreement with the firm controlled by Ajit Kerkar to buy the Centaur Hotel properties for a sum in the region of Rs. 300 crores.
The long pending case has finally been decided and Siddhivinayak has filed an application in the Bombay High Court for an injunction against V Hotels. It has been observed by the experts from the corporate world that there is nothing like permanent business partner in politics. It is more applicable in the real estate world. As a businessperson is guided by opportunities, he or she enters where there is an opportunity. Depending on the market situation, the deals may change at any time.
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