Jet, Piramal co want BKC plot deal revised

Mumbai: Jet Airways and Starlight Systems, a Piramal Sunteck Realty Group company, have approached the Mumbai Metropolitan Region Development Authority (MMRDA) in an attempt to renegotiate the deal relating to the purchase of land at Bandra-Kurla Complex (BKC). Last year, the companies had separately bought three plots. While Jet bought a 1.5-acre plot for Rs 825 crore, Piramal Sunteck, a JV between the Ajay Piramal Group and Sunteck Realty, acquired two plots with a total size of one acre for Rs 496 crore.
Both companies have requested MMRDA to either renegotiate the price or have a fresh look at the terms and conditions for the payment. The original deadline for the payment was March 31, 2009, which was extended to September 30. Jet and Piramal Sunteck have sought a lower price as the property prices have dropped from the time the deal was inked. Alternatively, they have asked for an extended period to pay the original amount.
“We will call for fresh bids for the plots, if the payment is not made by September,” said the MMRDA spokesperson.
11/09/09 Sachin Dave/Economic Times

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Categories: Jet Airways Sep 2009