Sahara seeks Rs 2,000 cr from Jet Airways

Mumbai: In a chamber summons filed at Bombay High Court on Thursday, Sahara India Commercial Corporation stated that Jet Airways will have to pay it Rs 2,000 crore for the purchase of Air Sahara as against the earlier agreed price of Rs 1,450 crore.
Sahara’s lawyer told reporters that Jet has to pay this amount as it defaulted on payment of instalments.
Jet Airways acquired Air Sahara, now JetLite, in an all-cash deal for Rs 1,450 crore. Jet paid Rs 900 crore upfront committing to pay the remaining Rs 550 crore in four equal annual and interest-free instalments of Rs 137.5 crore in four years beginning March 2008.
Claiming that Jet had defaulted on payment of the instalment, Sahara Corporation had sought court direction for attachment of some of the carrier’s movable properties. Jet in response, said that the Income Tax department had raised certain demands on Air Sahra for the period prior to the takeover and unrelated to the activities of JetLite after the takeover.
The Bombay High Court on March 31 had stayed attachment of Jet’s property.
On April 3, Jet Airways had filed an undertaking in the court assuring that it will not sell or lease out any of its moveable or immovable properties, except for perhaps paying off its dues to oil marketing companies or to the Airports Authority of India.
09/04/09 Business Line

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Categories: Jet Airways Apr 2009