Still no decision on Jet Airways deal for BKC plot

Jet had bid in March 2008 for the 5,951 sq m commercial plot at Rs 3.44 lakh per sq m. It has,however,not paid up the total amount of Rs 826 crore despite being granted two extensions that finally lapsed last September.

Sources said the MMRDA was to place a proposal in its meeting last Tuesday to call off the deal,following which Jet would have had to forfeit the Rs 10 crore earnest money deposit (EMD). However,with the matter having now reached senior government officials,the proposal was never put before the authority.

The airlines had negotiated with the MMRDA to exit the deal and get back its EMD. “We had refused to return the deposit,” said an MMRDA official. MMRDA commissioner Ratnakar Gaikwad said the matter has been referred to the government.

A Jet airways spokesperson said they have sent a proposal to the MMRDA. “We can’t divulge the details.”

Jet was to build its global headquarters in the central business district of BKC. The cash-strapped airline is already in talks with developers for a joint venture on a two acre plot purchased at BKC way back in 2006.

At the March 2008 auction,two other residential plots were picked up by Starlight Systems,a Piramal Sunteck Realty Group company,at Rs 496 crore. They too had asked for extensions and the option of staggered payment but finally decided to go ahead with the deal. “We have paid about 30 per cent and will make the remaining payment over the next six months,” said Kamal Khetan,chairman and managing director of Sunteck Realty.

Sunteck Realty has started building a residential project,Signature Island,on a previously owned plot adjoining the two new plots it bought. The firm has roped in Shapoorji Pallonji to build an ultra-luxury project with duplex homes that boast elevators in each unit. The two new plots were earlier meant to serve as an extension of the same project but following the slump that hit the realty market,the company has now reworked its plans. It will now build relatively smaller apartments to ensure a steady recovery of its land cost from the sale of apartments.