CHENNAI: Hotel Saravana Bhavan has issued a clarification stating that its outlet near Chennai airport was operating under a valid lease and was not an encroachment on Government land, contrary to reports that appeared in a section of the media on October 28.

Pointing out to the lease agreement signed on 6 March 2014 with the landlord, M Gokula Krishnan, the restaurant chain stated that it has been a lawful tenant at the St Thomas Mount property. The agreement covers 40,112 sq ft of land in Survey No 146/2 and is valid until 5 March 2026.

The company said it became aware that the landlord had an ongoing dispute with government authorities over the ownership and classification of the property. The landlord had filed a civil suit in 2012 before the District Munsif Court, Alandur, seeking protection against eviction without due process. The suit was dismissed on 27 October 2025.

The restaurant chain said that, despite being the lawful occupier, it did not receive any prior notice before revenue officials initiated an eviction operation early the next morning. It added that the action came as a "surprise" since the lease period had not lapsed.

Saravana Bhavan said the media report that described the outlet as an encroachment and claimed the business had overstayed beyond a 99-year Government lease was "factually incorrect". The company clarified that it had never held any government lease on the property and that the current occupancy was purely through a private contractual arrangement with the landlord.

The restaurant chain said the report had caused avoidable confusion among customers and had affected its reputation.