HC to examine E&Y report on Sahara buyout deal tomorrow

The Bombay High Court would tomorrow examine the Ernst & Young report on the erstwhile Sahara Airlines buyout by Jet Airways to decide the onus on payment of tax liability amounting to Rs 107 crore.

While Sahara contended that Jet Airways was liable to pay the tax liability after the takeover, the latter argued that the tax dues pertain to earlier period and hence Sahara should be made accountable for this.

Sahara has taken a stand to the contrary.

Global consultancy firm, E&Y, was appointed by Sahara Group in 2006 to carry the due diligence for the multi-crore takeover deal.

The issue arose after Jet Airways deducted a certain sum towards tax dues from the instalments it was to pay to Sahara as part of the deal.

However, Sahara India Commercial Corporation moved the High Court in March 2009 contending that Jet was liable to pay the original price of the buyout, amounting to Rs 2000 crore instead of renegotiated amount of Rs 1450 crore as it had defaulted on payments.