Centre asks Air India employees to vacate housing colonies by July 27

Employees will have to pay penalties and lose retirement benefits if they don't move out, says memo.

Employees of Air India, the former state carrier now privately owned by Tata Sons, have been asked by the Centre to vacate the company-provided accommodations by 26 July.

Air India has warned that failure to do so will result in employees paying a penalty, damage charges and losing retirement and other employee benefits.

Air India has two major housing colonies: at Vasant Vihar in Delhi and one at Kalina in Mumbai. Almost 1,800 employees reside in the two places.

Employee unions have protested the move and said that they are planning to move the High Court against the eviction notices. The employees had issued strike notice in November last year protesting against the same. The issue is now pending before the labour commissioner's office, which had initiated a conciliation process.

“In case of your failure to vacate the accommodation and continue to unauthorisedly occupy the same you would be liable to pay a penal rent equivalent to the sum of normal occupancy charges and double the market rent for the period of unauthorized occupancy. In addition, you shall also be liable to pay damage charges of Rs. 10 lakh (for Delhi)/ Rs. 15 lakh (for Mumbai),” said a memo sent to the employees and reviewed by ‘Business Standard‘.

The memo has also warned that failure to vacate the accommodation will result in loss of retirement or service benefits and any other financial benefits. “Further, you shall also be liable for action under the Public Premises (Eviction of Unauthorised Occupants) Act 1971 and shall also be liable for strict disciplinary action as per the service regulation,” it says.

Already the matter is under conciliation before the labour commissioner. The status quo should be maintained when matter is under conciliation but Air India is violating it. We will move the High Court,” said George Abraham of Aviation Industry Employees Guild.

Real estate of Air India including the housing colonies were not part of the privatization process and were transferred to a Special Purpose Vehicle- Air India Asset Holdings Limited (AIAHL). AIAHL plans to sell the properties to pay for the debt which it took over from Air India’s books to make the sale attractive.

Air India had a total debt of Rs 61,562 crore as of August 31, 2021. Of this, the Tata Group took over Rs 15,300 crore and the rest 75 per cent or around Rs 46,000 was transferred to AIAHL.

In October 2021, prior to the completion of Air India’s privatisation process, the airline had sought an undertaking from 1,600 employees residing in the quarters located in the Kalina area of Mumbai and Vasant Vihar area of Delhi that they will vacate the premises within six months of privatisation of Air India.

The Adani-group owned Mumbai International Airport Limited (MIAL) has also issued a notice to Air India asking it to surrender land that is not core to its operations. This includes the airline’s four staff colonies in Kalina.

Union Civil Aviation Minister Jyotiraditya Scindia had earlier said that the eviction notice by MIAL was according to the agreement where employees had to surrender their quarters within six months of the privatisation process.

Employees said that most of the families have stayed in the housing colonies for long periods, like 10-15 years and moving to a rented accommodation suddenly will result in financial difficulties.

In addition the Tata group has also announced plans to shift Air India’s corporate headquarters to Gurgaon meaning that the employees will have to search for accommodation there. “ At current housing allowance it is impossible to find an accommodation with decent conditions to live with family,” said an Air India employee who resides in Vasant Vihar colony.