ISLAMABAD: Ministry of Maritime, Port & Shipping ordered Karachi Port Trust (KPT) to recover the outstanding royalty and delay charges amounting to Rs128.137 million from food court contractor.
Sources told Customs Today that the contract was signed on 29th November 2004 between M/s Grand Leisure Corporation Private Limited Karachi and Karachi Port Trust to set up food court on BOT basis.
Sources said that the clause 8.1.1 of the contract stated that M/s Grand Leisure Corporation, the food court operating contractor would pay royalty to KPT in Pakistani rupees. Royalty payment would commence from the 19th month after signing of the implementation agreement or from the time the operations started whichever was earlier and would be made on monthly basis within 10 days of each month as per schedule i.e. Rs1 million from 0 to 4 years, Rs1.200 million 5 to 9 years, Rs1.500 million from 10 to 14 years and Rs1.950 million from 19 to 20 years.
The work was delayed by M/s Grand Leisure Corporation (Private) Limited which did not make payment of Rs128.137 million as royalty and delay surcharge for the period from June, 2006 to August, 2017 despite Board of Trustee resolution.
Sources said that the matter was mutually decided but the above-mentioned firm stopped the payment. Now Ministry of Maritime, Port and Shipping directed KPT authority that outstanding dues should be recovered as per the signed contract.
