Balasore, 22nd Sept 2025: A hotel located near Gandhi Smruti Bhavan under Balasore Municipality has remained locked for over one and a half years. Despite multiple attempts by the municipality to lease it out through tenders, no one has shown interest in taking it over. In fact, three rounds of tendering have failed, with not a single bid received.
This prominent hotel, located in Ward No. 17—considered the heart of the city—has become a point of public concern due to its prolonged closure.
Background
As per sources, the hotel had been operating under the name “Kalinga Hotel” for around 25 years since 1997. However, in 2022, the hotel became embroiled in a dispute, leading the municipality to take direct control of the property.
Later, a man named Rajesh Panda leased the hotel for 10 years, agreeing to pay a monthly rent of ₹3.24 lakhs. He was supposed to deposit a security amount of ₹68 lakhs, but only paid ₹36 lakhs.
Despite this, the hotel couldn’t run successfully and had to shut down within two years due to losses. As a result, Mr. Panda couldn’t pay the rent regularly.
Eventually, in August 2024, the hotel was officially closed and locked.
Tendering Woes
To revive the property, the municipality floated three separate tenders, the most recent one just 15 days ago. But no one has submitted a bid. One of the reasons cited is the high base price set in the tenders, which is discouraging potential bidders
Risk of Becoming a Haunted Building
With the hotel locked and unused for so many months, its condition has deteriorated significantly. Without proper maintenance, it is slowly turning into an abandoned, haunted-like structure. This is especially concerning given its central location in the city.
The prolonged closure is not only causing the municipality financial losses, but also affecting the city’s image, as such a key asset lies unused.
What the Municipality Says
Municipality Chairperson Sabita Sahoo stated that for 25 years (from 1997 to 2022), the hotel generated only ₹15,000 per month in revenue for the municipality, which was not at all profitable.
So, a decision was taken to revise the valuation and lease it out at a higher rate. Unfortunately, the lessee couldn’t sustain the business and had to pull out.
Despite three failed tenders, the municipality is still trying to find a viable solution. The issue will be discussed in the upcoming municipal council meeting, and a decision will be made accordingly.
Meanwhile, the hotel is periodically cleaned to maintain basic hygiene.