Scrapping of Jet Airways BKC plot allotment okayed

Published: Oct 23, 2012, 06:48 IST | Ranjeet Jadhav |

CM gives go-ahead as airline fails to pay for Rs 826-cr plot

Chief Minister Prithviraj Chavan has given the final go-ahead for cancellation of the 2008 allotment to Jet Airways of a prime, Rs 826 crore plot in Bandra Kurla Complex (BKC) for failing to meet the payment commitment. The decision was taken yesterday at a meeting of the Mumbai Metropolitan Region Development Authority (MMRDA) at Sahyadri Guest House.

MiD DAY report
The MiD DAY report that said MMRDA would be cancelling the allotment

Speaking to the media after the meeting, Metropolitan Commissioner Rahul Asthana said Jet would have to forfeit the Rs 10 crore it had paid so far after winning the 5,951 square metres plot in an auction.

“As Jet has failed to make the remaining payment for the Rs 826 crore plot even after the grant of several extensions, the authority has decided to cancel the allotment,” Asthana said. “Jet will have to forfeit the Rs 10 crore which it had paid as earnest money after winning the plot.”

It was reported yesterday in MiD DAY that the MMRDA was on the verge of cancelling the allotment. The MMRDA, which earns revenue through the sale of land in BKC, was fed up with the delay in payment for the plot, C-18 at G-Block.

New policy decisions
>> MMRDA will offer additional built-up area of 5.45 hectares (about 54,000 square metres) in E-Block of BKC at premium of 200 per cent of the ready-reckoner rate
>> Now plot holders in BKC will get six years to develop land allotted to them instead of four years
>> Waiver of 5 per cent premium for additional basement parking in BKC 

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