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6 years on, 508 AI staffers to get flats at Nerul

As many as 508 Air India (AI) employees will soon get their flats at Nerul in Navi Mumbai.

mumbai Updated: Jul 01, 2010 01:04 IST
HT Correspondent
HT Correspondent
Hindustan Times

As many as 508 Air India (AI) employees will soon get their flats at Nerul in Navi Mumbai.

They had paid the initial installments in 2004 but could not get possession because of a dispute between the City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) and their employer.

The Bombay High Court on Tuesday intervened in the matter and directed Air India to pay an additional Rs 60 crore sought by CIDCO towards the added premium for allotting the land to cooperative housing societies of the employees.

Air India will recover the amount from the employees.

CIDCO had allotted the plot measuring one lakh sq m to Air India in 1992 for constructing staff quarters in view of a proposed airport in Navi Mumbai.

The national carrier has completed constructing 25 buildings of 508 flats on 28,626 sq m.

But financial difficulties compelled the Air India management to reconsider development of the land.

In 1998, they decided to offer the flats to its staff on ownership basis. Accordingly, 153 staffers paid initial installments in 2004.

Abhimanyu Bhosale and four other AI employees approached the high court after their employer failed to hand over the flats to them.

He said that though they paid 10 per cent of the price and though the buildings were completed in 1997, they had not got the flats.

During the arguments, CIDCO said the plot was allotted on a long lease to AI for construction of staff quarters, and AI will have to pay Rs 60 crore more if it wanted to hand over the constructed buildings to its employees on ownership basis.

The petitioners said they were not liable to pay any extra amount.

The division bench of Chief Justice Mohit Shah and Justice SC Dharmadhikari, however, insisted the employees should bear the burden of the extra amount, since they were now going to get the flats on ownership basis.

The dispute was resolved on Tuesday only after the petitioner's lawyer Rohaan Cama said the employees will shoulder the burden of the additional amount.

First Published: Jul 01, 2010 01:03 IST