Lockdown impact | Lodha Developers defers half salary of its employees by 3 months: Sources

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Mumbai-based real estate developer Lodha Developers has deferred half the salary of its employees by a quarter due to the coronavirus pandemic and the subsequent lockdown, people familiar with the matter told Moneycontrol.

The company has deferred half the salaries of its employees for three months on account of COVID-19. The remaining amount would be paid back to the employees in the months of July, August and September, they said, asking not to be named.

When contacted, a company spokesperson contested this version of events."Employee salaries being reduced by half is factually incorrect and misleading. There are no salary cuts for FY 20-21 and salary will be paid in full from the end of lockdown,” the spokesperson said.

In March, a company statement had said advance salaries for the month of March 2020 had been given to all employees from lower to mid management level, so that they can take care of their daily needs and families.

“We understand that our employees will have to make arrangements to procure basic essentials during the lockdown and these advance funds will help them provide for their families and keep them mentally at ease,” the spokesperson had said.

In March, the company had decided to allow rent waiver for its retail partners soon after the government announced the 21-day lockdown on account of the coronavirus pandemic.

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"Retail partners, who are renting spaces in Lodha's retail properties, are exempted from paying rent since March 15, until the government permits reopening of retail operations. Maintenance charges will be reduced as per actual expenses during this period," the company had said in a statement.

Lodha had also claimed to have sold about 300 units across multiple projects in the Mumbai region since the start of the lockdown. The group’s UK business has generated new sales of about Rs 150 crore during the period, the company had earlier said in a statement.

On Akshay Tritiya (April 26), the group sold 80 units across its residential portfolio with several buyers preferring ready-to-move inventories and projects with integrated living, the company said in a statement.

Lodha group had made a foray into the London market in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London for over Rs 3,100 crore.

Lodha currently has nearly 42 under-construction residential projects, including The World Towers and Lodha Park, comprising several high rises in central Mumbai and Palava City.

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