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Notice served to Bollywood star over Agra theme park project
A Bollywood movie star who was given approval to build a giant theme park in Agra, India, has been ordered to pay US$93.4m (€75.8m, £66.5m) for failing to comply to contractual terms regarding the agreement.
The reported RS10,000 crore (US$1.5bn, €1.2bn, £1.1bn) 4sq km (1.5sq m) mega development was due to be developed over the course of a decade, with half that amount to be invested in the first five years as the park opened in phases.
Sanjay Khan, who made is acting debut in the 1964 film Haqeeqat, and his company Kingdom Entertainment, were granted approval for the grand project in October 2014 – part of a larger government plan to open 20 similar parks across India to boost tourism.
A Memorandum of Understanding on the project was signed in May 2016. The MoU said the park would be made up of seven themed cities, each connected via a monorail. Also included would be a luxury hotel, an area for themed weddings and receptions, a convention centre and an area for filmmakers to shoot movies.
The Uttar Pradesh State Industrial Development Corporation (UPSIDC) made the order following Khan’s failure to pay an initial US$92.1m (€74.7m, £65.5m) to acquire the land for the project, with the investment also acting as his initial share in the park. Following several reminders, the notice was posted for breaching the development’s contractual terms.
"Khan's Kingdom Entertainment was given a year to start work, which had lapsed,” said the UPSIDC in a statement.
"As per the provisions, it was allowed a six-month extension, which ended in November 2016. He further told TOI so far, the Khan's company has only paid US$38,000 (€31,000, £27,000) as bank guarantee."