PVR Cinemas and Reliance to revoke 'Act of God' clause and not pay rent to the landlords during the lockdown period
Act of God clause comes into action in only exceptional cases but it looks different from PVR and Reliance.
By Anoop Sai Bandi, April 01, 2020 16:45 IST
India's largest Multiplex chain PVR Cinemas with more than 570 screens has taken a shocking decision. The PVR chain of cinema management informed all the malls and the respective landlords about the same. The decision is that they would be invoking the 'force majeure' clause in the rental contract. They decided not to pay rent for the entire period of shutdown across the country.As per the latest reports, the retailer giant, Reliance Retail is also much likely to invoke the same clause and not to pay rent. Because of the Coronavirus outbreak, the government has announced a strict lockdown. All the malls and theatres have been shut across the country for the past two weeks. The circumstances come under the 'Act of God' clause. On this note, sources are claiming that PVR has opted to insist on not paying rent for this period. They are also claiming that it will be at least May 15th for the things to get normalized. The malls and theatres might get re-opened then. Not just retail shops and multiplexes, even the food court operators and parking spaces are also going to follow this clause now.Managing Director and CEO of Anarock retail Anuj Kejriwal revealed the same. He said that the retail sector will now have to adopt the current realities that they are not generating any revenue. He added that after the completion of lockdown, the retail trade is going to resume and all the tenants will stick to mall developers who have shown flexibility.Also Read: Mahesh Babu recollects the legendary journey of his father Superstar Krishna on the occasion of his 55th year in Tollywood