Jet may be penalized for BKC payment delay

Mumbai: Jet Airways, which quoted an astounding Rs 826 crore for a 1.5-acre plot at Bandra-Kurla Complex in 2008, has been unable to pay the sum, despite several extensions granted by the Mumbai Metropolitan Region Development Authority (MMRDA).
The authority is now contemplating to penalize Jet Airways 18% interest for the delay in paying the bid amount for the past three years. The fine at 18% interest would work out to Rs 445 crore. Including the principal amount of Rs 826 crore, Jet would now have shell out Rs 1,270 crore to MMRDA. The authority says it will set a payment deadline for Jet, failing which, they may take back the land.
Rahul Asthana, MMRDA commissioner, said this was in accordance with the terms and conditions governing land sales in BKC. "Sufficient time was given to the company to make the payment and with the payment not forthcoming, penalizing them would be the next step," Asthana said.
24/06/11 Rajshri Mehta/Times of India

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Categories: Jet Airways Jun 2011