Why PVR Inox at Chennai's Aerohub might close down?
What's the story
The five-screen PVR INOX multiplex at Chennai airport's Aerohub is facing a potential shutdown due to a legal dispute. The Airports Authority of India (AAI) has claimed that operating a cinema hall is not allowed under the AAI Act of 1994. However, Justice N Anand Venkatesh of the Madras High Court has ordered AAI to maintain "status quo" until it considers a representation made by PVR INOX seeking permission to continue operations at Aerohub, reported The Hindu.
Court directive
What the court said
The court's directive came after Additional Solicitor General AR.L. Sundaresan, along with AAI standing counsel Ramaswamy Meyyappan, assured that AAI would decide in accordance with Articles 41 and 42 of the multi-level car park (MLCP) development agreement and communicate it to PVR INOX. The orders were issued while disposing of a writ petition filed by PVR INOX seeking to restrain AAI from interfering with the multiplex's operation.
Dispute origins
Dispute traces back to a 2017 tender
The dispute traces back to a 2017 tender invited by AAI for developing the MLCP with integrated commercial infrastructure at Chennai airport. Olympia Techpark (Chennai) Private Limited won this tender and formed Meenambakkam Realty Private Limited, which signed a development agreement with AAI in 2018. This agreement included plans for the multiplex, which PVR INOX later sub-licensed from Meenambakkam Realty in November 2022.
Closure decision
Arbitral tribunal was later constituted to resolve the dispute
On July 21, 2023, AAI informed Meenambakkam Realty of its decision to shut down the multiplex as operating cinema halls was not permissible under the AAI Act. This prompted Meenambakkam Realty to approach the Delhi High Court for an interim order. An arbitral tribunal was later constituted to resolve the dispute, and in February 2024, it stayed AAI's July letter providing interim protection to the developer.
Agreement termination
PVR INOX requested to allow the multiplex's operation
In May 2025, Meenambakkam Realty informed PVR INOX that its 2018 development agreement with AAI had been prematurely terminated. The authority decided to maintain the entire complex constructed on 4.5 acres of land on its own. However, PVR INOX has requested AAI to allow the multiplex's operation despite this termination, citing Article 42 of the development agreement, which empowers AAI to permit sub-licensees to continue under mutually negotiable terms and conditions.