Bihar Industrial Area Development Authority (Biada) has issued a repossession order to take back the land on which P&M Mall, owned by filmmaker Prakash Jha and home to the city's lone multiplex, has been constructed.

Sources claimed that Biada issued the order on April 20 because of payment issues.

Though no senior Biada official was available for comment, the mall's general manager Vijay Nath Mishra said the issue related to sub-leasing of shops and outlets at the mall.

"We have made full payment for taking land of the mall on lease from Biada at the time of handover itself," Mishra said. "Around three years ago, Biada asked us to make payment against sub-leasing the outlets in the mall at the rate of 10 per cent of the present circle rate per square foot, that too with retrospective effect. In total, a whopping sum of around Rs 2.44 crore was asked from us against the sub-lease.

"The amount sought by Biada was excessive and it was in violation of their own lease deed norms," he added. "Hence, we protested against it and paid Rs 40 lakh as per our calculation for the sub-lease done on proportionate basis."

Asked if the repossession order would translate into closing down the mall, Mishra said: "We have received a copy of the repossession order on Tuesday and we have 30 days' time to make an appeal to the appellate authority as per the lease deed norms of Biada. We are consulting our legal experts and an appeal would be filed against the repossession order within a day or two."

State industries minister Jai Kumar Singh said the P&M Mall administration has been served several notices over the past few months to make the payment.

"The issue of pending payment against P&M Mall came up during a review meeting of the department around two months ago," the minister said. "Apart from P&M Mall, there are several other plots owned by Biada against which payments are pending. It was decided that lease should be cancelled for unused allotted land. Similar decision was taken for land where there are pending payments."

The issue of P&M Mall would be reviewed in a meeting of the department scheduled for Thursday, he added.

The administrators of the mall, which provides employment to around 2,000 people, accused the state government of highhandedness.

"There are already very few industries in Bihar and Prakash Jha took a sincere step to set up this mall, which apart from providing employment also enhances the city life of Patna. It was a financial matter and it could have been resolved through talks. However, the state government has shown a dictatorial attitude by issuing the repossession order," said Mishra.

Around 1.33 acres of land was handed over to Jha in 2006- 07. P&M Infrastructures Pvt Ltd, of which Jha is managing director, developed the mall. Biada had its local office on the land where the mall has been constructed.

According to the official website of P&M Infrastructures Ltd ( http://www.pandminfra.com), the mall in Patna has a built-up area of 2.25 lakh sqft. (20903.18 sq m). It was inaugurated on April 14, 2011, by chief minister Nitish Kumar in the presence of Jha. The mall has 68 outlets in seven floors, including Cinepolis multiplex. Executives at the mall claimed that around 10,000-15,000 people visit it daily.

Additional reporting by Joy Sengupta