Opposition PDP has demanded that Centaur Lake View Hotel should be handed over to Jammu and Kashmir government alleging that Hotel Corporation of India (HCI) has failed to keep the agreement reached with the state 30 years ago.

"The deal inked between Air India (which owns HCI) and Sheikh Mohammad Abdullah-led government was on the grounds of promoting international tourism in the state. Since that purpose has never been fulfilled, therefore, the deal stands violated by the HCI," PDP spokesman Nayeem Akhtar said.

Akhtar was reacting to media reports that the management contract for the Centaur Hotel between the HCI and DB Realty has not been scrapped.

"Sale of this prime property to a third party is against the terms and conditions of original agreement and it should naturally be restored to the state" he said and demanded a probe into the deal.