Aerohub at Chennai airport premises. | Photo credit: B. VELANKANNI RAJ
The Madras High Court on Tuesday directed the Airports Authority of India (AAI) to submit to the Civil Aviation Ministry whether cinema halls could be allowed either in Central Industrial Security Force (CISF) secured zones or even outside such zones inside the country’s airport complexes.
Expecting the ministry to take a policy decision on the matter, Justice M. Dhandapani ordered that the five-screen multiplex PVR INOX, set up at the Aerohub (a commercial space attached to a multi-storey parking complex in the non-secure zone of the Chennai airport), can operate until then.
If the ministry decides to allow cinema halls in non-secure zones of airport complexes, AAI has been asked to enter into a lease agreement with PVR INOX as the agreement between its original lessor Meenambakkam Realty Private Limited and AAI has been terminated. If the ministry decides not to allow cinema halls even in the non-secure zones of the airport complexes, then PVR INOX will have the option to take action against its original landlord, the judge said and directed the high court registry to mark a copy of its order to the ministry for information.
The orders were passed after hearing senior counsel PS Raman and Satish Parasaran for PVR INOX and Additional Solicitor General AR.L. Sundaresan, assisted by AAI’s standing advisor Ramaswamy Meyyappan. The ministry was not a party to the lawsuit.
History of the lawsuit
In 2017, AAI floated tenders for the development of Aerohub at Chennai Airport. Olympia Techpark (Chennai) Private Limited emerged as the successful bidder and offered a special purpose vehicle called Meenambakkam Realty, which subsequently entered into a development agreement with AAI in 2018 to develop, construct, operate and maintain the facility for a period of 15 years.
All the necessary clearances were then obtained and the Aerohub was constructed with a five-screen multiplex. PVR INOX entered into a sub-license agreement with Meenambakkam Realty in November 2022 to operate the multiplex and started screening films from 1 February 2023. The sub-licence between them was for a period of 13.5 years.
However, on 21 July 2023, AAI wrote a letter to Meenambakkam Realty stating that it has been decided to close the multiplex as running cinema halls is not a permissible activity inside the airport complex under the provisions of the AAI Act, 1994. The letter was signed by Joint General Manager (Commercial) M. Selvanayagam on behalf of the Airport Director.
After nearly two years, Meenambakkam Realty informed PVR INOX on 15 May 2025 that its 2018 development agreement with AAI had been prematurely terminated and AAI had decided to keep the entire 2,47,202 sq ft Aerohub, built on 4.5 acres, on its own. PVR INOX moved the Madras High Court and obtained an interim order of status quo. Subsequently, the case was heard at length and the court issued the orders on Tuesday.
Published – 9 Dec 2025 20:14 IST
