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HDFC to auction Mumbai-based prime office property of Jet Airways

HDFC, one of the lenders to the now-grounded Jet Airways has decided to put Mumbai-based prime office property of Jet Airways on sale airline failed to repay Rs 415 crore in April, a media report said.

India TV News Desk India TV News Desk
New Delhi Updated on: May 08, 2019 21:41 IST
Representative Image
Image Source : PTI

Representative Image

HDFC, one of the lenders to the now-grounded Jet Airways has decided to put Mumbai-based prime office property of Jet Airways on sale airline failed to repay Rs 415 crore in April, a media report said.

The e-auction will be held on May 15, 2019. The office in Mumbai's suburban financial centre Bandra Kurla Complex (BKC), spread over 52,775 square foot carpet area, is a part of Jet Airways Godrej BKC, a 12-storey premium commercial building.

The office was given as a collateral by Jet Airways on a loan whose payment was due on 15 April.

Last month, the Mumbai-headquartered airline, Jet Airways suspended its operations on a temporary basis after lenders rejected Jet Airways' request for Rs 400 crore lifeline. During a Mumbai Metropolitan Region Development Authority (MMRDA) auction to develop the BKC plot in the year 2008, it had bid Rs 826 crore, according to a news report in ToI.

In 2011, Jet Airways tied up with Godrej Properties to jointly develop the plot. Drugmaker Abbott India bought space measuring 4.35 lakh sqft in the building for Rs 1,479 crore. According to HDFC, the property was mortgaged to it by Jet and it was now enforcing the mortgage.

(The earlier version of the story inadvertently carried the headline: HDFC auctions Mumbai-based prime office property of Jet Airways. We regret the error.)

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