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AAI’s Property Strucks in Rent Dispute
A chunk of land under the Airports Authority of India (AAI) which could easily fetch a rental of Rs 10 lakh is turning into a waste at Juhu Aerodrome.
A decade ago, AAI rented out the land to Indian Airlines which used it for the development of an enclosed structure, and later sub leased to Shobha Singh & Sons, when it shifted its operations to the Santacruz airport. Poor documentation and leniency meant that neither company collected rents from their respective tenants over the years.
With reference to the case, Indian Airlines owes AAI Rs 80 lakh as outstanding dues and Shobha Singh & Sons owes Airlines Rs 16 lakh. None of the parties is ready to make their respective payments. The structure contains wreckage and storage material.
Public Premises Act 1971 allows AAI to initiate eviction proceedings against Shobha Singh & Sons as the latter is not a direct tenant of the authority. AAI will give tripartite negotiations a try – at least three rounds of discussions.
Shobha Singh & Sons are willing to pay the concerned amount further to an indemnity that neither AAI nor Indian Airlines will claim any compensation in return. This means a loss of Rs 1 crore to AAI and Indian Airlines.
On the other hand, a spokesperson for Indian Airlines said “The company holds no property at Juhu and do not owe any money to AAI.”
News Published Under: Real Estate India | No Comments »