Jet Airways’ Mumbai property up for sale for recovery of ₹414 cr

PTI New Delhi | Updated on May 09, 2019 Published on May 09, 2019

Jet Airways office at BKC Mumbai. Photo: Prashant Waydande   -  The Hindu

The e-auction, with a reserve price of ₹245 crore, is scheduled for May 15

Mortgage lender HDFC has put up crisis-hit Jet Airways’ office space for sale with a reserve price of Rs 245 crore, as part of efforts to recover outstanding dues. Jet Airways, which temporarily shut operations on April 17, owes around Rs 414 crore to HDFC. “The borrower (Jet Airways) has failed to repay the amount (Rs 414.80 crore) due to HDFC Ltd. Accordingly, HDFC Ltd has become entitled to enforce its mortgage over the immovable property,” it said in a public notice.

The office, spread over 52,775 square feet carpet area, in Mumbai’s suburban financial centre Bandra Kurla Complex (BKC), is on the fourth floor of the building ‘Jet Airways Godrej BKC’. The e-auction of the office, with a reserve price of Rs 245 crore, is scheduled for May 15, according to the public notice.

The distressed airline, which had more than 120 planes in its fleet, has been grappling with financial woes. The full service carrier has defaulted on various payments, including salaries to employees. As part of a resolution plan, State Bank of India-led consortium of domestic lenders have sought bids for stake sale in the airline.

Four entities - Etihad Airways, TPG Capital, Indigo Partners and National Investment and Infrastructure Fund (NIIF) - are learnt to have shown interest in picking up stake in Jet Airways. The details of the bidders are expected to be known on Friday.

Earlier this week, a grouping of Jet Airways’ pilots moved the Supreme Court seeking direction to the SBI to provide the assured interim finance for restarting operations. The petition filed by the National Aviators’ Guild has also sought a direction to the Centre and the Director General of Civil Aviation (DGCA) to disallow slots of Jet Airways to other airlines on the permanent basis.

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Published on May 09, 2019
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