Grounded Jet Airways To Transfer Mumbai Office Space Lease For Rs 370 Crore

Jet Airways, which is undergoing liquidation, on Wednesday said it has executed an agreement to transfer the lease of its office space in Mumbai to an entity for a little over Rs 370 crore.

The proposed lease transfer, subject to approval from the Mumbai Metropolitan Region Development Authority (MMRDA), is being conducted under the provisions of the Insolvency and Bankruptcy Code (IBC) and Liquidation Regulations, according to a regulatory filing.

After flying for 25 years, the once storied Jet Airways shuttered operations in April 2019, following financial headwinds and subsequently, lenders referred the ailing airline for resolution under the IBC.

Under the insolvency resolution process, the winning bidder was unable to implement the resolution plan due to multiple issues, and after long-drawn legal proceedings, the Supreme Court, in November 2024, ordered the liquidation of the carrier.

'The company has executed the deed of assignment and other related documents in order to transfer lease and related rights of the company over leased premises i.e., office No. 201 comprised in the entire 2nd floor of the building situated at C-68, G-Block, Bandra Kurla Complex, CTS No. 4207 Kole Kalyan, Taluka Andheri, Mumbai, subject to approval of Mumbai Metropolitan Region Development Authority,' the filing said.

The lease will be transferred to Parthos Properties Pvt Ltd for a consideration of Rs 370.25 crore, it added.

A letter, dated August 26 and signed by Jet Airways Chief Financial Officer Ramesh Sundaram, about the deed has been submitted as the filing to the BSE.

Currently, trading in the shares of Jet Airways remains suspended due to procedural reasons.

At the peak of its operations, Jet Airways had a little over 120 planes. When the operations came to a halt due to mounting debt woes and unpaid salaries, the airline had around 16 own planes.

On April 17, 2019, the airline's last flight S2-3502 took off from Amritsar around 10.30 pm and touched down at Mumbai's Chhatrapati Shivaji International Airport at 12.22 am on April 18.

Jet Airways' low-cost arm JetLite operated the flight with a Boeing 737-800 aircraft, which was later taken on lease by no-frills airline SpiceJet.