Sahara India Commercial Corporation (SICCL) has moved the Bombay High Court against Jet Airways. The company said that Jet Airways have not paid instalments related to the buy-out of erstwhile Sahara Airlines (now JetLite) in April 2007.
Jet Airways had purchased Sahara Airlines for Rs 1,450-crore and paid Rs 900-crore upfront. Over the next four years (beginning 2007), the private air-carrier had agreed to pay Rs 137-crore as yearly instalments. Any default from Jet means that Sahara can claim Rs 2,000-crore from the former.
In response, Jet Airways sent a notification to the Bombay Stock Exchange (BSE). Jet Airways said there is a disagreement going on between the two on income tax-related issue. It said the IT department has raised certain demands on Sahara India Airlines (now JetLite) for the period prior to the takeover and unrelated to the activities of JetLite before the takeover.
Jet Airways said that this liability should be borne by SICCL India since the arrangement of this liability were not made by SICCL. In turn, Jet Airways deducted the amount from the payment it makes to SICCL.
The company said it cannot comment on the matter as it is sub-judice.
Following the news, Jet Airways' stock price slipped 1.74 per cent at Rs 170 on the BSE today.