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.