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Uncertainty looms over Jet Airways' Bandra Kurla Complex plot

Friday, 26 Feb 2010
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Jet Airways' 1.47-acre plot at the Bandra Kurla Complex (BKC) in Mumbai in Maharashtra is surrounded by uncertainties.

In March 2008, Jet Airways had won the rights to develop this plot in an open auction from the MMRDA for Rs 826 crore. By 30 September 2009, Jet was to pay about Rs 400 crore, which is 50 per cent of the outstanding amount along with 14 per cent interest on the amount. The remaining money was to be paid in a year's time. It was unable to make the payment on time due to the global downturn.

Now, MMRDA is likely to float fresh bids for the plot if the remaining full payment is not made soon. Jet could also lose Rs 10 crore, which was paid as earnest money paid for the plot.

Upon completion of the transaction, the plot was to be leased to the company for 80 years.

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