PANAJI
Even after being censored by the Comptroller and Auditor General (CAG) over acceptance of “unsolicited” offer from Myles High Hotels and Towers Pvt Ltd for leasing commercial office space, the Goa Industrial Development Corporation (GIDC) has now revised the lease period from three years to nine years with an additional security deposit of over Rs 99.59 lakh.
CAG in its communication to IDC had already pointed out that it has incurred loss of Rs 1.2 crore so far due to renting out of the premises, which is not being utilized to its full capacity.
The GIDC had on November 11, 2023, received an offer from Myles High Hotels and Towers Pvt Ltd for leasing commercial office space on the second floor of their building at Patto, Panaji, for Rs 5.7 lakh monthly rent plus taxes plus maintenance. Interestingly, the rent has now been increased to Rs 14.43 lakhs per month, with effect from April 1.
According to the documents available with The Goan, the GIDC during its Board meeting held on April 16, 2025, approved the payment of additional security deposit of Rs 99,59,517 to Myles High, thereby revising the total deposit to Rs 1,58,79,711 -- in line with the extended lease term.
GIDC had initially approved acquisition of office premise at Myles High for a period of three years but later through a resolution on December, 23, 2024 the lease term period was revised to nine years with an option to extend by three years.
“In view of the extended lease tenure, the lessor Myles High Hotels and Towers Pvt Ltd has requested a revision in the security deposit from Rs 59,20,194 to Rs 1,58,79,711 -- equivalent to 11 months’ rent,” the GIDC said in their proposal placed before the Board.
GIDC said that the additional deposit will be met from its approved administrative budget for the financial year 2025-26.
CAG noted in November 2023, the GIDC accepted the lease offer for the first year with a cumulative annual financial impact of over Rs 94 lakh.
“Myles High Hotels and Towers Pvt Ltd issued a document to hand over the keys of the premises to the GIDC, but it was not taken over. The GIDC sought a revised quote on June 7, 2024, and a revised quote of over Rs 7.68 lakh plus taxes plus maintenance for the same premises was given,” CAG said.
On June 15, 2024, the GIDC accepted the revised offer. On June 21, 2024, the GIDC signed the lease deed for 36 months from Jan 2024, stating a monthly rent of Rs 5.7 lakh plus taxes plus maintenance from Jan 2024 to May 2024 and Rs 7.6 lakh plus taxes plus maintenance thereafter.
The GIDC undertook interior works and spent Rs 77 lakh in July and Aug 2024 and shifted into the new premises in September 2024.
“There were no documents on record to detail the formal handing-taking over of the premises and the physical condition of floors, walls, etc, on the date of taking over,” the CAG said.
Pointing to the irregularity, CAG had commented “immediate acceptance of an unsolicited offer from Myles High Hotels and Towers Pvt Ltd, despite being over four times the prevailing market rate was irregular.”
