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The Hindu
26-06-2025
- Business
- The Hindu
PVR INOX moves Madras High Court again challenging proposed closure of multiplex at Chennai airport's Aerohub
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.
The Hindu
19-06-2025
- Business
- The Hindu
PVR INOX multiplex at Chennai airport's Aerohub faces closure due to legal dispute
The five-screen PVR INOX multiplex operating at the Aerohub, a commercial space attached to the multi-level car park (MLCP) in Chennai airport, is facing a threat of closure since the Airports Authority of India (AAI) had taken a stand that operation of a cinema hall is not a permissible activity under the AAI Act of 1994. Justice N. Anand Venkatesh of the Madras High Court has, however, directed the AAI to maintain status quo until the authority considers and disposes of, in accordance with law, a representation made to it by PVR Inox on May 29, 2025 seeking permission to continue its operations at the Aerohub. The direction was issued after Additional Solicitor General AR.L. Sundaresan, assisted by AAI standing counsel Ramaswamy Meyyappan, told the court that AAI would certainly a take decision in line with Articles 41 and 42 of the MLCP development agreement and convey it to the multiplex chain. The orders were passed while disposing of a writ petition filed by PVR INOX to restrain AAI from interfering with the operation of the multiplex. Senior counsel P.S. Raman, representing the petitioner, told the court that AAI had invited tenders in 2017 for development of the MLCP with integrated commercial infrastructure at the Chennai airport. The dispute Olympia Techpark (Chennai) Private Limited turned out to be successful bidder and it floated a special purpose vehicle titled Meenambakkam Realty Private Limited which, in turn, entered into a development agreement with AAI in 2018 to develop, build, operate and maintain the facility for a period of 15 years. Thereafter, AAI obtained environment clearance from the Union Ministry of Environment and Forests in December 2018 and the application for environment clearance specifically included the area earmarked for the multiplex. Therefore, AAI was fully cognizant of the construction of cinema halls even as early as in 2018, Mr. Raman said. He added that AAI had also sanctioned the construction plans in 2019 and 2021 which had explicit mention about the cinema halls in the Aerohub and that in 2021, the authority had sought a No Objection Certificate (NOC) too from the Greater Chennai City Commissioner of Police for the cinema halls. It was only on the basis of all these documents, PVR INOX had entered into a sub-licencing agreement with Meenambakkam Realty in November 2022 for operating the multiplex and commenced screening movies from February 1, 2023. The sub-licencing tenure was for a period of 13.5 years. However, on July 21, 2023, the AAI wrote a letter to Meenambakkam Realty stating it had been decided to close down the multiplex since running of cinema halls was not permissible under the AAI Act. The letter had been signed by Joint General Manager (Commercial) M. Selvanayagam on behalf of the Airport Director. Immediately, Meenambakkam Realty approached the Delhi High Court and obtained an interim order. Thereafter, an arbitral tribunal was constituted to resolve the dispute and the tribunal, in February 2024, stayed the operation of the July 2023 letter thereby providing interim protection to the developer. Premature termination Thereafter, the interim order was vacated and Meenambakkam Realty conveyed a startling information to PVR INOX on May 15, 2025 that its 2018 development agreement with AAI had been terminated prematurely and that AAI had decided to maintain the entire 2,47,202 square feet complex constructed on 4.5 acres of land on its own. However, since Articles 42 and 43 of the development agreement empowers AAI to permit sub-licencees to continue on mutually negotiable terms and conditions, PVR INOX had given a representation to the authority on May 29 to permit the operation of the multiplex dehors the termination of the agreement with Meenambakkam Realty.
