Court Orders Aricent Tech to Vacate Office for Rent Default
Bengaluru: A court in Bengaluru has ordered telecom software solutions firm Aricent Technology to vacate the office premises it has been occupying in RMZ Ecozen for allegedly defaulting on rental payments.
Acting on an eviction suit filed by Millennia Realtors, an RMZ Corp group company, the city civil court asked Aricent to hand over the property located at Marthahalli on Sarjapur Road by July 13. “The total amount to be paid, as per the court order, by Aricent is around .₹ 32 crore,” said a person familiar with the matter. Aricent said it plans to contest the order. “Aricent respectfully disagrees with the Hon’ble Court’s judgment and intends to appeal such judgment. The company does not anticipate any adverse effect on its financial position,” the company said in an email response to ET. The company, backed by New York-based private equity firm Kohlberg Kravis Roberts & Co, allegedly defaulted on rental payments since 2003 and the matter has been in court for 11 years.
“It occupies 130,000 square feet of office space in RMZ Ecozen and around 1,000 employees operate out of this office,” said a person familiar with the matter. The lease deed with Aricent started in November 2003.
“It is hereby further ordered that the defendant shall pay .₹ 18 per sq. ft. per month as damages in respect of use and occupation of the schedule property” from February1, 2005, until the date of eviction, with interest at 6% per annum, the court said in its ruling.
The court also said that if Aricent fails to vacate the property within three months of its order, RMZ Corp will have the right to take possession through the process of the court at the cost of the defendant.
Aricent, previously known as Flextronics Software Systems, was spun off from Flextronics in 2006 when KKR acquired a majority stake in the company for $900 million.