Multiplex Association of India seeks waiver of rent and CAM dues
The Multiplex Industry has been a very prominent and long-term partner to all and has played a critical role in the success of shopping centers and malls across the country.
The Multiplex Association of India (MAI) has urged malls and their developers to waive rent dues and common area maintenance (CAM) charges during the lockdown.
MAI is an all India body formed under the aegis of FICCI in 2000. It is the only national multiplex trade body. It represents more than 18 regional and national multiplex chains. Its members operate more than 600 multiplexes with more than 2900 screens across the country representing around 90% of the multiplex industry in India.
In a statement MAI's President Deepak Asher said, "As compared to some other businesses, which have seen a revenue drop, multiplex revenues have overnight become zero. This has put us in a very grim situation as we struggle to meet our commitments to pay our staff salaries on time and meet our fixed overheads."
"The Multiplex Industry has been a very prominent and long-term partner to all of you and has played a critical role in the success of shopping centers and malls across the country. Though it has seen many highs and lows in our business, over the past 20 years, we have never defaulted on our commitments to pay rent and common area maintenance (“CAM”) to our partners, the mall owners. However, with ZERO revenues, we have virtually no ability to pay any rent or CAM dues or meet our other fixed overheads," the statement added.
While the lockdown may continue for the next month or two, the cinema industry will take several months (“recuperating period”) even after the lockdown is lifted, to get back to its feet, as the pipeline of content begins to flow again, and people gain the confidence to step out of their homes and start visiting crowded places like cinemas.
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