Bangalore: Housing Development and Infrastructure Ltd (HDIL) on Wednesday said its Mumbai airport slum rehabilitation contract had been scrapped, leading to a loss of 279.9 crore in the March-ended quarter.

Vice-chairman Sarang Wadhawan said the real estate firm wrote off 441.98 crore after Mumbai International Airport Ltd (MIAL) terminated the slum rehabilitation contract it had signed with the developer. The company will seek legal remedy against the termination notice, he said.

The Mumbai-based company had made a profit of 315.25 crore in the year-ago March quarter. Revenue in the latest quarter fell to 142.7 crore from 625 crore a year ago.

The project, part of the modernization of Mumbai airport, has been stalled for at least two years over the issue of eligibility norms for the shifting and relocation of nearly 85,000 slum dwellers.

MIAL “served a notice of termination on the company for the Mumbai International Airport Ltd slum rehabilitation project citing unsubstantiated charges and the company has not accepted the said notice", HDIL said in a statement on Wednesday.

“The company has been advised by their legal counsel that said notice of termination is not tenable in the court of law and has initiated legal remedies available to it," it said.

HDIL’s consolidated debt stood at 4,018.83 crore on 31 March. The stock ended Wednesday 6.80% lower at 47.95 a share on BSE.