X BKC project promoter declines to pay rent by citing force majeure clause.

Invoking the force majeure clause in the context of the COVID-19 lockdown, the promoters of the X BKC project in Kala Nagar, Bandra requested MIG Colony’s original tenants not to deposit their cheques for the May-June period.

Citing financial problems and bad market conditions, MIG (Bandra) Realtors and Builders Pvt Ltd, part of the DB Realty group, released post-dated cheques in three instalments for a six-month hardship compensation or transit rent.

Last week the management committee was to send the second of the three cheques dated April 7 to the tenants to cover the rent dues for May and June 2020. On April 6, however, MIG (Bandra) Realtors and Builders Pvt Ltd wrote a letter to the MIG Society saying that the COVID-19 pandemic and the government imposed lockdown had severely impacted their business and hindered their ability to fulfil obligations.

“As you know the construction has come to a halt and so have the sales and collections. After the lockdown is lifted, it will take at least 60 days for the contractors and the workers to be remobilised for the construction to start again,” said the letter signed by one of the company’s directors, Pankaj Rajmachikar.