Facing an unprecedented crisis due to nationwide lockdown following Coronavirus outbreak, the Multiplex Association of India (MCI), which operates nearly 90 percent of multiplex industry in India, has requested all landlords and multiplex developers, for complete waiver from payment of rent and common area maintenance (CAM) dues during the lockdown and recuperating period.
The association says that the requisition is to help it tide over this unprecedented situation which is completely beyond anyone's control.
Formed under the aegis of FICCI in 2000, the nation's only multiplex trade body, the association represents more than 18 regional and national multiplex chains with more than 600 multiplexes and 2900 screens across the country.
Due to the outbreak of COVID-19 and the subsequent shutdown of the entire cinema industry across the country on account of lockdown measures announced by the Government, our Industry is going through an unprecedented crisis that threatens our very existence, it states.
It adds that as compared to some other businesses, which have seen a revenue drop, multiplex revenues have overnight become zero.
"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. Though we have seen many highs and lows in our business, over the past 20 years, we have never defaulted on our commitments to pay rent and 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 association states.
Noting that they will be unable to survive as an industry through this period of lockdown and recuperating, the association seeks the support of the landlords and multiplex developers in granting them complete waiver from payment of rent and CAM dues during the lockdown and recuperating period.