Mumbai: More bad news for the debt-laden Jet Airways, as they now stand to lose their building at Bandra Kurla Complex.
This move comes after the non-payment of a loan, which prompted Housing Development Finance Corporation Limited (HDFC Limited) to auction the ‘Jet Airways Godrej BKC’ property on May 15. The grounded-carrier had to repay Rs 414 crore including loan, interest and other charges. This property, which was jointly developed with Godrej, measures nearly 52,775 square feet.
The reserve price for the auction is Rs 245 crore. The earnest money of Rs 10 crore will have to be deposited by the bidders on or before May 13, HDFC limited stated. The plot, where this 12-storey commercial building stands, was won in a bid from MMRDA at a cost of around Rs 800 crore. While the name of the property remains Jet Airways Godrej BKC, however now, the developer, Godrej Properties has no stake in the property. It continues to be called Jet Airways Godrej BKC, as per the previous arrangement between both the parties.
Until recently, Jet Airways which was the second largest airline, hit rock bottom after the lenders decided stop giving money. It is reported the airline has a debt of about Rs 12,000 crore. The delay in release of emergency funds and bidding process by the consortium of banks, Naresh Goyal was forced to step down. Over the past few days, the airline staff has been protesting across the country seeking payment of their dues and have also demanded to restart the airlines. On Wednesday as well, there was a protest that was organised by the staff.
