Sahara accuses Jet of breach of contract, seeks Rs2,000 cr

Sahara accuses Jet of breach of contract, seeks Rs2,000 cr
PTI
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First Published: Thu, Apr 09 2009. 03 20 PM IST
Updated: Thu, Apr 09 2009. 03 20 PM IST
Mumbai: Sahara Commercial Corporation on Thursday filed an application in the Bombay High Court alleging that Jet Airways had committed breach of contract in the takeover deal and was liable to pay it (Sahara) Rs2,000 crore instead of the renegotiated Rs1,450 crore agreed on by them.
While Jet sought four days to file a rejoinder to Sahara’s application, the Court has given the airline time till this afternoon to go through the application, and it will then hear the matter. The court will give the date of the next hearing on Thursday.
Jet bought Sahara India Airlines from the Sahara Group in April 2007 for Rs1,450 crore after an arbitration award. Naresh Goyal-led Jet paid Rs900 crore, and was to pay the balance in four instalments.
According to Sahara’s application, Jet had, however, defaulted and thus was liable to pay it Rs2,000 crore.
Jet’s lawyer Janak Dwarkadas, in the last hearing, had said that in March 2008, the Income-Tax department demanded tax dues of Rs107 crore from Sahara India Airlines (now called JetLite). According to Jet, this amount was due from the Sahara Group as it pertained to the period before the acquisition.
So last March, while paying Sahara the instalment of Rs137 crore, Jet deducted Rs37 crore against the I-T dues. This year too, Jet deducted Rs50 crore on the same account.
Dwarkadas said that Sahara has now taken a stand that it is not liable to pay the I-T dues.
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First Published: Thu, Apr 09 2009. 03 20 PM IST