Citrus Group’s Passikudah land buy faces legal snag

Tuesday, 10 April 2012 01:28 - - {{hitsCtrl.values.hits}}

A Citrus Leisure Group subsidiary’s acquisition of 12 acres of land in Passikudah has faced a legal snag.

The company said the fully owned subsidiary Passikudah Beach Resort purchased the land based on professional advice that it has clear legal title.

However the Citrus Board has now instituted legal proceedings in the District Court of Valachennai against a predecessor in the title as the 1st Defendant with Passikudah Beach Resorts Ltd., being added as a party disputing the titled of the predecessor.

The subsidiary has retained legal counsel to defend its interests.

Prices of all Citrus securities dipped yesterday. Its share price declined by 90 cents to Rs. 28.10 whilst 2012 and 2015 Warrants dipped by 80 cents and 10 cents respectively.

In January, Citrus said that in November 2011, the subsidiary purchased lots one and two of the land called Passikudah Estate situated in Passikudah in extent of over 12 acres for Rs.168.78 million. Funds for the acquisition were advanced by Citrus Leisure.