Jet Airways Secures ₹370 Crore Deal for Mumbai Office Space Lease Transfer

Jet Airways has signed an agreement with Parthos Properties to transfer the lease of its office space in Mumbai for ₹370 crore. The financially troubled airline’s lease transfer deal is subject to approval from the Mumbai Metropolitan Region Development Authority. This move is a significant step in the airline's liquidation process, which has been ongoing since the Supreme Court of India's order in November last year.

The Jet Airways proposed deal is being conducted under the provisions of the Insolvency and Bankruptcy Code and Liquidation Regulations. The development comes at a time when the airline is undergoing liquidation, following a series of financial setbacks and unsuccessful attempts to find a viable buyer.

“Jet Airways has executed the deed of assignment and other related documents in order to transfer the 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 the Mumbai Metropolitan Region Development Authority,” Jet Airways said in an exchange filing on August 26.

The Naresh Goyal-owned airline had ceased operations in 2019 due to severe financial distress. At its peak, Jet Airways operated around 120 aircraft, but the number was reduced to just 16 due to debt woes and unpaid salaries. The airline had entered the insolvency resolution process, and several major players, including IndiGo Partners, TPG Capital, National Investment and Infrastructure Fund, Etihad Airways, and Think Equity-Redcliffe Capital, had shown interest in acquiring the carrier.

However, the National Company Law Appellate Tribunal (NCLAT) approved the transfer of ownership rights to a consortium led by the United Kingdom’s Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. Despite this approval, the lenders, led by the State Bank of India, contested that the Jalan-Kalrock-led consortium failed to meet the terms for the acquisition of the airline.

In 2024, the Supreme Court ordered the liquidation of the airline, citing the consortium’s failure to implement the resolution plan even after five years of approval. The liquidation process aims to maximize the value of the airline's assets and ensure a fair distribution to its creditors and stakeholders.

The transfer of the Mumbai office space lease is a crucial step in this process, as it helps to monetize the airline's remaining assets and contribute to the liquidation fund. This deal, if approved, will provide a significant financial boost to the liquidation proceedings and help in settling some of the outstanding debts.

Parthos Properties, the new lessee, is a well-known real estate player in Mumbai. The company has a strong track record in managing and developing commercial properties in prime locations, which makes it a suitable choice for taking over the Jet Airways office space. The deal also reflects the continued interest in prime real estate in the Bandra Kurla Complex, one of Mumbai’s most prominent business districts.

The lease transfer deal is expected to be a positive development for both Jet Airways and the real estate market in Mumbai. It not only helps in the liquidation process but also ensures that the prime office space is put to good use, benefiting both the new lessee and the local economy.

As the liquidation process continues, Jet Airways and its stakeholders will be closely monitoring the progress of this deal and other asset monetization efforts. The hope is that these measures will help in resolving the airline's financial issues and provide some relief to its creditors and employees.