Nagpur: The erstwhile hotel royal palace, which appeared as a landmark during the 1990s – when the city landscape began to change gradually – but also slipped into the coming years, being destroyed.
Now known as the Chidambara Hotel in Central Bazar Road in Ramdaspeth, it is also among the main properties that will be auctioned by banks that days when the default loan has become a big problem.
The hotel was taken over by Shikshak Sahakari Bank, which auctioned under the state cooperative law Maharashtra to restore its contributions.
The structure is currently being broken down to Pave Way for other hotels, which is a 3.
Property scattered in an area of ​​more than 9,600 square feet have been purchased by the Orient Group, which runs the chain of nine budget hotels in the city.
The property was purchased for RS12 Crore from one agrawal family, whose members held it after the death of Patriarch Balakrishna Agrawal who initially bought a hotel from Shikshak Sahakari Bank.
Afzal Mitha of the Orient Group, who confirmed its development, said there was a plan to build a new hotel in three years.
“The property was bought last year and now because the situation improved in front of Covid, we have started with demolition work,” he said.
The Orient Group plans to build an eight-story structure with 60 rooms in the new hotel, apart from facilities such as banquet hall, he said.
The Royal Palace hotel initially belonged to Raj Kumar Khattar, a businessman from the city.
When entering the loss, the Shikshak Sahakari bank took over the property.
The Khattar bungalow behind the Alankar theater was also taken over by the bank.
The auction by the bank has received much attention in 2003.
After more than three rounds, it was finally taken more than RS4.52 Crore, said a source at the bank.
Agrawal then renamed the Royal Palace Hotel to the Chidambara Hotel.
The hotel ran for several years and finally closed around the past decade.
Even under new management, the hotel comes under the hammer.
This time, the action was under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Law (Sarfesi Act) by Bank PSU.
Mitha said this would be the first premium hotel from the Eastern Group.
“So far, we only go to low budget hotels where business depends on volume,” he added.