Jet, Starlight ask for more time to pay
It was touted as one of the largest land deals in the country and one that reflected the sharp surge in Mumbai’s property rates.
By Rajesh Unnikrishnan, ET Bureau |
MUMBAI: It was touted as one of the largest land deals in the country and one that reflected the sharp surge in Mumbai���s property rates. But it has been learnt that winning bidders���Jet Airways and Starlight System���have asked for more time to make the final payment on the Rs 1,322-crore Bandra-Kurla Complex land deal.
Jet and Starlight, an Ajay Piramal-promoted real estate firm, had won the Mumbai Metropolitan Region Development Authority land deal in March in an auction that saw Jet winning the commercial plot bid, while Starlight bagged the bid for residential plots in G Block of the Bandra-Kurla Complex. Both Jet and Starlight have so far only paid the earnest money to MMRDA.
Sources said Jet Airways now does not want to go ahead with the idea of developing its plots in G Block and has roped in international real estate consultant Coldwell Banker to find out a third party and exit from the deal. Jet Airways did not reply to an email query sent by ET.
When contacted, Suntech MD Kamal Khetan said, ���So far, MMRDA did not put any demand for the final settlement. We will pay the remaining amount as and when the demand comes. However, compared to few months back, the market has changed dramatically.���
A senior MMRDA official said, ���We are in the process of taking the bids for the final approval. I cannot comment anything further. ��� Sources said MMRDA may give more time to the bidders for final settlement because the authority feels that in a changed market scenario, a rebid process may not find any bidders. Even during the G-Block bid, MMRDA could not sell two plots due to absence of bidders.
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