The Mumbai Metropolitan Region Development Authority (MMRDA) recently gave Jet Airways and Starlite Systems time till September-end to pay their dues amounting to over Rs1,300 crore, for the three plots they purchased at Bandra-Kurla Complex (BKC).
Both Starlite and Jet have sought a staggered payment option from MMRDA for their bid amounts, citing the slowdown in the Mumbai realty market. After a long wait, MMRDA granted the extension till September 30. The authority has extended the date four times since 2008.
Senior MMRDA officials said that if the two companies fail to meet this deadline, they would forfeit their security deposits. In March 2008, Jet Airways was the sole and winning bidder for a 65,348 sq ft (1.5 acre) commercial plot at BKC at Rs826 crore.
Two residential plots, 75 885.6 sq feet each, were grabbed by Starlite Systems, a group company of Piramal Sunteck Realty Pvt Ltd, for Rs496 crore.
Jet Airways bought the plot to develop its global headquarters and Starlite Systems bought the plots to construct a 20-storey residential tower at the same auction. The companies, which paid the earnest money at the time of purchase, had last sought time till mid-October 2008 for making full payment, but failed to honour it. Subsequently, they have sought further extension.
Kamal Khetan, chairperson, Piramal Sunteck Realty, said, “The market has been bad. It’s not that we cannot make the payment. We will do it once our finances are more stable. However, we have to work out the commercial viability. We will be taking a decision on this soon.”
The authority’s stand though is contrary as it is learnt that MMRDA is making a plan to accommodate the needs of the companies and restructure the payment schedules. “The authority has not discussed any plans to levy a fine or interest on the two companies for the delayed payments in their meeting recently,” said an official.
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