Jet seeks further relief to pay land dues: Sources

Jet Airways and Starlight had bid for land deals worth over Rs 1300 crores in 2008, one of Mumbai’s most expensive land deals in Bandra Kurla Complex. But both companies failed to meet their payment schedule. CNBC-TV18 learns that Starlight will now be paying Rs 150 crores by November 30. Jet, however has a different plan, reports CNBC-TV18's Swati Khandelwal Jain.
We understand from our sources that Jet Airways has sort an extension for another six months. They were to pay it on September 30, and so they have now taken time till March 2010 to pay up the dues. The dues are about Rs 800 crore, and this is against a security deposit of Rs 10 crore, which Jet will have to pay if they don’t pay on time.

Now we understand from sources that the application is still pending with the government and they haven’t come back on whether they will sanction the six months extension. But what we understand from sources in Jet is that Jet is particularly not interested in picking up this land now because they have realised that they have picked it up at a very high rate versus the first plot that they had picked up.
27/11/09 Swati Khandelwal Jain/CNBC-TV18/Moneycontrol.com

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Categories: Jet Airways Nov 2009