Bombay HC to study E&Y report on Sahara-Jet deal

Mumbai: The Bombay High Court on Thursday said it would go through a due diligence report by Ernst & Young to find out whether it contained any mention about tax liability of Rs 107 cr of Sahara Airlines (now Jetlite), which was taken over by Jet Airways .
Hearing a dispute between the two corporate entities over the multi-crore buyout, Justice D Y Chandrachud fixed September 2 and 3 for deciding the issue.
Sahara has taken a stand that it was not liable to pay the tax dues. Global consultancy firm E&Y was appointed by the Sahara Group in 2006 to carry out due diligence exercise for the deal.
Sahara India Commercial Communication (SICCL) had in March last year moved the Bombay High Court contending that the Naresh Goyal-led airline was liable to pay Rs 2,000 cr instead of the renegotiated amount of Rs 1,450 cr agreed between them as it had de faulted on payment.
Sahara submitted that the takeover price had been brought down to Rs 1,450 cr from Rs 2,000 cr provided Jet Airways would not default on payment. Sahara said Jet had defaulted on payment and, therefore, concession on the takeover deal was not tenable.
15/07/10 PTI/Business Line

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Categories: Jet Airways Jul 2010