New Delhi, July 20: The under-fire Tulip Star Hotel in Mumbai, formerly the Centaur Hotel, Juhu, today said it will make voluntary retirement service payouts to eligible employees in the next two to three months.

The stalled VRS payouts — due on April 29 — have angered employees who have been lobbying MPs to probe the circumstances under which the hotel was sold. “We will settle the VRS scheme as soon as possible. It will take us 23 months or may be even less. The total outgo under VRS is estimated to be somewhere between Rs 2,325 crore for 550 employees,” executive director Shailesh S. Mody said.

The six-acre, 371-room five star hotel was sold for Rs 153 crore to Ajit Kerkar, a member of the sub-committee on divestment of Hotel Corporation of India (an Air-India subsidiary). Employees have accused the management of violating the terms and conditions of their service.

A.M. Kabre, vice-president of the Hotel Corporation of India Officers’ Association, said: “The annual increments of officers and family medical benefits, leave travel concession of all employees were immediately stopped after Tulip took over. Also, the provident fund contribution, housing loan instalments, income tax and professional tax deducted from the monthly salary of the employees have not been deposited with the concerned authorities,” he added.