Sahara appeals against high court order on Jet Airways payout
06 May 2011
Mumbai: Sahara India today went in appeal in the Bombay High Court against an order of a single judge who held that Jet Airways was liable to pay only Rs1,450 crore for purchase of Sahara Airlines in 2007. The airline now operates as Jetlite, a part of the Jet Airways stable.
The appeal was mentioned before a division bench of the High Court headed by chief justice Mohit Shah, who decided to call the matter tomorrow.
In its appeal, Sahara has asked that it paid the entire amount of Rs2,000 crore, the original price for the buyout. It said the hon'ble court of Justice DY Chandrachud had erred in holding that Jet was liable to pay only the renegotiated amount of Rs1,450 crore.
The judge also imposed a 9 per cent interest on Jet Airways for its remaining pending amount of Rs402 crore to Sahara, which worked out to Rs478 crore. Sahara said it feels that 9 per cent interest was less and that they should get more.
After the deal was signed, Jet paid Rs900 crore to Sahara and agreed to pay the remaining amount in four instalments from 2008.
The income tax department had slapped a notice of Rs107 crore on Sahara, which, Jet Airways argued was payable by Sahara as the amount pertained to a period before acquisition of the airline.
Sahara argues that this was not the case.