Jet, Sahara to settle the case out of court

The Bombay High Court has postponed the decision on the dispute between Jet Airways and Sahara India Commercial Corporation Ltd. to July 2. However it has been revealed that both companies are looking at an out-of-court settlement.
The dispute between both companies came about when Sahara filed a case against Jet Airways, saying that the airlines has made a default in a payment towards the acquisition of Air Sahara. The company said that according to the deal, Jet was supposed to have made a payment of Rs2,000 crore to Sahara, but instead paid only the renegotiated amount of Rs1450 crore.Moreover, with the Income Tax department being dragged into the picture, this case has got uglier.
Jet replied to this by saying that it had made a payment of Rs100 crores (as part of the first installment) to Sahara after deducting Rs37.50 crores in the form of income tax dues. Following that, Jet again made a further deduction of Rs50 crore as the Income-Tax Department raised the demand for income tax on Sahara Airlines.
26/06/09 merinews

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Categories: Jet Airways Jun 2009