Kochi, Friday, January 07, 2011: The Kerala High Court on Friday ruled as unconstitutional, the Kovalam Palace (Taking Over by Resumption) Act 2005.

The High court issued the order following the petition filed by the Kovalam Hotels Limited challenging the takeover of the Kovalam Palace by the State Government.

Earlier report:-

Hotel Leela Venture Limited and Kovalam Hotel Limited have moved the Kerala High Court challenging the Kovalam Palace takeover by Resumption Act 2005. In the writ petition filed by the companies and its Director Venukrishnan, it was submitted that the Act is beyond the legislative competence of State Government and violative of the fundamental rights guaranteed under the Constitution of India.

According to the petitioners, Kovalam Palace is not a heritage site and even if it were a heritage site, the Government had no power to take it over. It was also submitted that the Government of India and the India Tourism Development Corporation had already clarified that the Kerala Government has no title, possession or right in the Palace.

The Kovalam Palace, adjoining the Kovalam Hotel at the famous beach resort near Thiruvananthapuram, has been in the eye of a storm after the ITDC divested the Hotel and the possession of the Palace to the Gulfar Group, which later sold the property to Leela Venture Ltd. The State Government took over the Kovalam Palace earlier this year after a wave of protests, led by the opposition Left Front, claiming Kovalam Palace as a heritage site and not a part of the Kovalam Hotel property.

(News agency inputs)