Carlton Hotel management files Rs370m suit against DHA


Company says DHA should adjust rent against damages incurred during hotel’s takeover

Carlton Hotel and Defence Housing Authority (DHA) are currently engaged in a bitter legal battle, including a Rs 370 million damage suit which the Carlton management has instituted against the DHA.

Venus Pakistan (VP) dragged the DHA in Sindh High Court (SHC) for, what a company director claimed, was the Authority’s “sudden” takeover of the ill-fated Carlton Hotel on Feb 23, five days before the Feb 28 deadline the DHA had set on Feb 17 for the payment of the disputed rent.

The two sides have been at loggerheads over the payment of Rs 84 million rent the DHA claimed against the hotel management which contends that the quoted amount should be adjusted in the losses the VP incurred due to the Authority’s failure to fulfil its contractual obligations related to the provisioning of hot water and air conditioning system in the hotel’s rooms.

Thursday saw the SHC holding its first hearing and listening to the disputing parties’ views.

According to VP officials, the company had filed a Rs 370 million law suit against the landlord. “Of this total, Rs 170 million are under the head of recovery and Rs 200 million for overall damages the takeover caused us,” a VP manager told Pakistan Today seeking anonymity.

The SHC, however, has adjourned the hearing till April 22.

A spokesman of VP claimed that the DHA seemed to be bent upon taking over the hotel instead of settling the dispute altogether.

The Authority, he said, had chosen Sunday (Feb 23), a holiday when all the offices were closed, for “forcibly” taking over the hotel.

“While we were expecting them to sit at the table to negotiate the row, their vigilance team suddenly came at 8am on Sunday and sealed it,” the spokesman claimed.


The spokesman said while the DHA was demanding Rs 84 million rent unpaid by the hotel since January last year, his company wanted the amount to be adjusted with the losses it had incurred due to shutting down of some of the hotel’s rooms for the unavailability of hot water and air conditioning systems.

“We had long shut down many of our rooms that inflicted on us huge losses,” he claimed but was unsure about exact amount of losses.

Under the agreement the DHA was bound to provide the hotel with a geyser-backed hot water and AC system that is operational. “But they never did that,” the spokesman said.

DHA spokesman Major Aurangzeb when contacted refused to comment on the issue saying the matter was sub-judice.

The sources privy to the matter, however, said the Authority had pleaded in the court that the takeover was caused by lack of hotel maintenance by the VP.

A VP director, however, termed DHA’s pleas in the court as “baseless” saying his side never had been able to maintain the hotel because of DHA’s default on the agreement.

Now as the High Court has set next hearing on April 22, the sources hinted that the two sides might go for an out-of-court settlement.

While the hotel management already has deposited Rs 84 million in the court as a bank guarantee, the DHA, the sources claimed, was also feeling the heat of the pressure the court and media had created.

The sources said the DHA seemed to be opting for the reopening of the hotel. “Though having not moved formally on it, but they (DHA) may withdraw from the takeover,” the sources said.

On the other hand, a VP director said: “The dispute was to be resolved through negotiations. But they did not wait for Feb 28.”

He said his side had submitted the disputed amount in the court. “But we would not give this amount to them unless the dispute is settled,” he added.


  1. I believe authorities and News media should get a wake up call and its about time to expose, Illegal take over of Carlton Hotel and other illegal activities of DHA. You just donot Break the doors and use armed forces to Take over whatever they like without warrants.
    It happened to Carlton Management Today , Tomorrow it is going to be our Families living in DHA areas.


  2. The refusal of the DHA spokesperson to comment clearly shows that they are at wrong. I've heard these guys brought weapons to seize the hotel as if the employees were trained terrorists. Has the DHA turned into some kind of a gang? This is the reason why businesses are not investing in Pakistan.

  3. When any governing body sees progress in Pakistan, it decides to manipulate its position of authority and abuse it for personal gains. And so is the case, proven by DHA’S actions by the takeover. Completely unjust, unethical and self-ridiculing in the long run. Mr. Asad is a very just and honest businessman and I strongly feel the case should and will be in favor of VP. Pakistan Zindabad.

  4. Mr Asad is a well reputed business man in Pakistan plays a major role in supply chain management. I see these stories and it hurts me that in my country we face such issues and the frequency of these problems has risen, initially we would hear these stories about shakedowns only from gang members, now it truly saddens me hearing that this comes from DHA, raiding a hotel and emasculating the waiters and employees of Carlton hotel by showing their weapons and forcibly throwing them all out onto the road! I strongly believe that this should be put to an end and DHA should be exposed to the mass media.

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