A luxury resort in the diamond-rich town of Diamond Lake has closed down after the state government announced it would not accept foreign investment in the resort, which was valued at nearly $2 billion in 2012.
The state government had said it would allow foreign investors to buy up to 90 per cent of Diamond Lakes hotels and resort units as part of a long-term development plan.
The resort was meant to be one of the jewels of the city of about 80,000, which is the heartland of the diamond mining industry.
But now it is being shut down by the state, which had initially said it was not ready to accept foreign investments in the project.
Diamond Lake resort operator Dinesh Khatri told The Associated Press that the state was not prepared to sell off the property.
“We are a privately owned business.
The state government has no legal power to sell it off.
The decision has been taken by the local government,” he said.”
It is a matter of respect and dignity for the local people.
The resort will be sold and the land will be given to the government.
We are not ready for any foreign involvement.”
In an interview with the AP on Thursday, Khatr said he had not been given the details of the government’s decision and that the company was awaiting a response.
“The state has announced a decision to discontinue the resort.
The final decision is being taken by local government and then we will see how it plays out,” he told the AP.
Diamond Lakes was one of India ‘s top-rated resort destinations, with a five-star rating from TripAdvisor and one star from The Economist magazine.
The average annual hotel room rate in 2012 was about $400.
The Diamond Lake site was purchased in 2012 for about $1.3 billion.
It was meant for an investment of about $2.8 billion.
Diamond lakes had about 2,600 hotel rooms.
The hotel is now closed down.
The AP has reached out to the state for comment.