Jet Airways crisis: HDFC puts airline's BKC office in Mumbai for sale
BusinessToday.In May 9, 2019
Housing Development and Finance Corporation (HDFC) has put up Jet Airways' Mumbai office in Godrej BKC on sale. The 52,775-sq-ft office on the fourth floor of the complex has been put on the block for a reserve price of Rs 245 crore. The sale process was initiated after the debt-ridden airline failed to pay dues of Rs 415 crore owed to the mortgage financier. The amount is in addition to interest and other charges.
In a notice, HDFC said: "In these circumstances, notice is hereby given to the public in general and in particular to the borrower that the below described Immovable Property mortgaged to HDFC Limited, the physical possession of which has been taken by the receiver appointed by HDFC Limited on April 16, 2019, will be sold by HDFC Limited in enforcement of the mortgage created in its favour, on an 'as is where is basis', 'as is what is basis', 'whatever there is basis' and 'without recourse basis' by way of public auction, on May 15, 2019, for realisation of HDFC Limited's dues together with further interest, additional interest and rests along with liquidated damages, costs, charges, etc."
The airline owes its lenders Rs 8,500 crore and had to shut operations after banks failed to reach a consensus on extending fresh funding."
Adding to its woes, a day ago, Jet Airways said that it will stop providing security services such as pre-departure checks, baggage X-rays at non-metro airports, frisking of staff and even passengers in times of emergency to foreign airlines after May 10. This development is likely to affect 38 foreign carriers operating flights to India.
Moreover, the Jet Airways' pilots union, National Aviator's Guild (NAG) moved the Supreme Court on Tuesday with a plea to direct banks and lenders to release the interim funding to the debt-ridden airline. The NAG that blamed SBI for the situation of the airline said that certain decisions such as allotment of slots, deregistering of aircraft and giving them off to other operators were taken without regard for the future of its 22,000 employees.