For its past mistake, Karnataka govt must now pay Rs 24 crore to Taj Group

Nagarahole: It was a decision taken 25 years ago, but it could leave the state government poorer by Rs 24 crore and the Taj Group of Hotels richer by the same amount.

Having given Gateway Hotels and Getaways Resorts Limited, a subsidiary of the group, permission to run a resort in the heart of Nagarahole Tiger Reserve over two decades ago, the government later withdrew it in the face of protests.

The Taj Group approached a court in Madikeri claiming compensation for the amount it had invested on renovating the resort and the case went to the high court, which ordered the state government to pay up.

But it instead approached the Supreme Court , which admitted its appeal only a couple of months back. The outcome? It has to pay up Rs 24 crore by July 2 to Gateway Hotels and Getaways Resorts Limited.

It all started with a resort built by the Karnataka Forest Development Corporation , being handed over to the forest department and then leased to the Taj group, which renovated it to its liking. When protests erupted over permitting a resort in a wildlife sanctuary , the then state government beat a hasty retreat.

“The case would have been resolved had the government paid Rs 9 crore to the group some years ago, but now it will have to p a y Rs 24 crore,” said a senior forest officer in Mysuru,warning any delay will only see the interest rise and burden the government further.

Nagarahole Tiger Reserve director, H C Kantharaj, when contacted, said he had written to the state government about the money it owed the Taj group.