Saturday, July 01, 2006

Jet sues Subroto Roy for Rs 500-cr refund

Lucknow: Jet Airways on Friday filed a case in the Bombay HC against Sahara Group chairman Subroto Roy for recovery of the Rs 500 crore escrow amount paid to Air Sahara when the Rs 2,300 crore acquisition deal was struck.
In response, Sahara counsel here told FE that there was ’no question of returning the money.’
Jet Airways share plunged to its 52 week low at Rs 585.00 before closing at 589.20, down 3.28% on the BSE on Friday.
Roy has been sued in his personal capacity since he was the personal guarantor for refund of the advance in case the share purchase agreement was terminated, Jet counsel told the court.Earlier this week, Jet Airways had filed an application before Supreme Court arguing that as per the share purchase agreement, Sahara India had ’unconditionally undertaken’ to repay the advance of Rs 500 crore if the deal failed.
30/06/06 Financial Express

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