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Multiplex industry body seeks relief on rental payments from mall developers

Meenakshi Verma Ambwani New Delhi | Updated on April 05, 2020 Published on April 05, 2020

A representative image   -  @PVR

Between March 11-16, due to Covid-19 pandemic, multiplexes were one of the first industry, that was asked to shut down by various state governments

The Multiplex Association of India (MAI), which represents 90 per cent of the industry, has urged mall and multiplex developers to give a complete waiver on rents and CAM (Common Area Maintenance) charges as temporary relief ,as the country battles with Covid-19 outbreak.

In a letter to the mall owners and developers, MAI stated, "While the lockdown may continue for the next month or two, the cinema industry will take several months (recuperating period) even after the lockdown is lifted, to get back to its feet, as the pipeline of content begins to flow in and our patrons gain the confidence to step out of their homes and start visiting crowded places like cinemas." The association added that the industry would be unable to survive through the lockdown and recuperating period, without their support.

Between March 11-16, multiplexes were one of the first industry, that was asked to shut down by various state governments, even before the PM decided to announce a national lockdown. The industry body said overnight this led to the multiplex industry's revenues becoming zero, and it is struggling to pay wages to employees as well as other fixed overheads.

"We seek your support in granting us complete waiver from payment of rent & CAM dues during the lockdown and recuperating period, to help us tide over this unprecedented situation which is completely beyond our control. We are seeking this temporary relief to ensure that cinema industry across the country does not die an instant death leaving a significant impact on shopping malls across the country, millions of lost jobs and unwanted litigation," MAI added.

MAI's members operate more than 600 multiplexes with more than 2,900 screens across the country.

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Published on April 05, 2020
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