Firoka to claim £6.2m (From Haringey Independent)

Firoka to claim £6.2m over Ally Pally

10:06am Tuesday 31st March 2009 in Alexandra Palace By Elizabeth Pears

See you in court: millionaire Firoz Kassam will sue the Ally Pally trust

A COMPANY that traded in Alexandra Palace without signing a lease will sue for £6.2million.

Firoka Ltd, the company Haringey Council selected to take over the landmark building, will claim the huge sum after a takeover bid fell through.

The amount of the lawsuit against Alexandra Palace Charitable Trust, made up of Haringey councillors, was revealed at last night's council meeting.

Councillor Robert Gorrie, leader of the Liberal Democrats, said: "This is yet another chapter in the sorry tale of Labour's handling of Alexandra Palace.

"Yet again Haringey's taxpayers will have to pick up the bill for their incompetence. Faced with the pressures of the recession, the millions lost in Icelandic banks and the desperate need for investment in our children's services, this couldn't have come at a worse time."

The company, owned by millionaire Firoz Kassam, planned to turn the historic building into the ultimate leisure complex, but a High Court quashed its lease after finding a consultation with residents was flawed.

Jacob O'Callaghan, the claimant in the High Court case, said: "Clearly Mr Kassam still sees this charity as easy pickings and its trustees as easy targets.

"Save Ally Pally campaigners will continue to defend the palace and its assets and will support the trustees against spurious legal action by Firoka."