Google terminates lease deal with Vatika over 'delay'

Technology giant Google has terminated an agreement to lease 7 lakh sq ft of office space in Vatika's office complex in Gurugram claiming delay in handing over possession and not following the terms of the contract.

Google had signed the pact in June 2020, but the real estate developer has laid a counterclaim in a letter to the tech major suggesting that the company was already in possession of the building and currently was in process of fitouts when the agreement was abruptly terminated.

"The purported termination has no contractual basis and clearly demonstrates that in blatant and naked breach of the ATL, Google has failed and is unwilling to perform its legal obligations," Vatika said in a letter to Google. Google had sent the notice of termination on December 31, 2021.

"The lessor had agreed to hand over the phase I premises to Google in watertight condition in accordance with the handover conditions, along with the occupancy certificate, on August 15, 2020. In accordance with Clause 3 of the agreement, in the event of any delay in the handover of the phase I premises beyond December 14, 2020, Google also has the right to terminate the agreement, including the proposed lease of the phase-II premises," Google said in the notice. Google also asked Vatika to refund the security deposit paid with interest.

"Despite several discussions/meetings following up on the completion and handover of the premises and opportunities provided to the lessors to hand over, neither the phase-I premises nor the phase-II premises have been handed over to Google. Therefore, in exercise of its right, Google intends to terminate the agreement," Google said in the letter.

"We don't comment on specific contractual agreements," a spokesperson for Google said. Gaurav Bhalla, MD, Vatika Group, told ET the company will take action against Google as per the law as the termination is against the contract.