Mumbai Airport cancels HDIL slum redevelopment pact

MUMBAI: Realty developer Housing Development and Infrastructure ( HDIL) has received a termination notice from the Mumbai International Airport (MIAL) for its 275-acre slum rehabilitation project, citing non-completion of the project on time.

The slum rehabilitation major has not accepted the notice and is planning to move court against it. The company, however, has now accounted for costs of Rs 440 crore into its profit & loss account resulting in a net loss of Rs 280 crore against a profit of Rs 316 crore a year-ago.

"We don't see any logic in this (notice) and, therefore, we don't accept this. We will move court and also seek damages," said Hari Prakash Pandey, vice-president, finance, HDIL.

Under this largest slum rehabilitation project which was awarded to HDIL in 2007, the company was expected to clear around 275 acres of encroached land around Mumbai International Airport.

The project involving rehabilitation of 85,000 slum units was expected to be completed in 2011.

The developer was supposed to receive transferable development rights along with 65 acres around the airport for building commercial projects like hotels in exchange for clearing the land by rehabilitating these slum dwellers.