PVR INOX moves Madras High Court again challenging proposed closure of multiplex at Chennai airport's Aerohub

The Hindu

26-06-2025

PVR INOX has approached the Madras High Court again with a new writ petition challenging an order passed by the Airports Authority of India (AAI) on June 20, 2025 refusing to permit the operation of a five-screen multiplex at the Chennai airport's multi level car parking-cum-commercial complex named 'Aerohub.'
Justice N. Anand Venkatesh, on Thursday (June 26) directed the AAI to file its counter affidavit by July 8 and ordered maintenance of status quo till then, since senior counsel P.S. Raman, representing PVR INOX, reported that the company had invested ₹20 crore on the multiplex and that it could not be closed down at will.
On the other hand, Additional Solicitor General (ASG) AR.L. Sundaresan, assisted by AAI counsel Ramaswamy Meyyappan, told the court nothing would happen if the Chennai city is devoid of just one multiplex. He also brought it to the notice of the court that AAI had not signed any direct contract with the multiplex operator.
In his submissions, Mr. Raman said, AAI had entered into a development contract with Meenambakkam Realty Private Limited, a special purpose vehicle floated by Olympia Techpark (Chennai) Private Limited, for the construction of Aerohub and that PVR INOX was a sub-licencee of Meenambakkam Realty.
Following disputes, AAI had prematurely terminated the development agreement with Meenambakkam Realty but did not order closure any of the commercial establishments run by sub-licencees but for insisting upon closure of the multiplex alone on the ground that cinema hall was not permissible under the AAI Act of 1994.
Mr. Raman contended the AAI Act does not contain any express prohibition on operation of cinema halls at the airports. He said, Section 12(f) of the Act only states that the functions of AAI would include the establishment and maintenance of hotels, restaurants or restrooms either at the airports or near the airports.
'If it is the case of AAI that nothing but for hotels, restaurants and restrooms can be operated by AAI, then how is it that Ramraj Cotton is selling dhotis and Higginbothams is selling books. There is a gymnasium too and every other conceivable activity that could be found in any other shopping mall is found in the Aerohub too,' he said.
Contending the AAI could not project the operation of a cinema hall in the airport as an illegal activity, the senior counsel said, the authority was bound by the doctrine of promissory estoppel since the construction of the cinema hall was done with the full consent of AAI which had approved the building plan.