Jet may lose Rs 826-cr plot at Bandra-Kurla

Mumbai: Jet Airways made headlines in March 2008 when it won a 1.47-acre plot for Rs 826 crore at Bandra-Kurla Complex (BKC), Mumbai’s premium commercial complex, to build its headquarters. Now, two years after the mega-deal, Mumbai Metropolitan Regional Development Authority (MMRDA) has decided to confiscate the property from India ‘s largest private airline for failure to pay the money after depositing the initial earnest money of Rs 10 crore.
A top property consultant in Mumbai felt that MMRDA, which is the apex body responsible for infrastructure development in Greater Mumbai may now re-auction the property, since the same plot will now fetch 10-15% more.
Jet had sought and received several extensions to make the payment, but the authority is in no mood to accommodate further, since it has to finance expensive projects like Mumbai Metro Rail Project and the Mumbai Urban Infrastructure Project, apart from several skywalks.
Said Ashish Shelar, board member, MMRDA: “The 17-member board has taken a decision to confiscate the land from Jet Airways for failure to make payments for the plot. We will soon send out a letter to Jet Airways, informing them of our decision.” However, a Jet Airways spokesperson told FE: “There is no such development that Jet is aware of.”
29/04/10 Shaheen Mansuri/Financial Express

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Categories: Jet Airways Apr 2010