Sahara seeks Rs 550 cr more from Jet for buyout

Sahara India today filed an appeal in the Bombay High Court against the order of a single Judge which had held that Jet Airways was liable to pay Rs 1,450 crore for purchase of Sahara Airlines (now Jetlite) in 2007.

Sahara's lawyers Pradeep Sancheti and Satish Kishanchandani mentioned the appeal at the fag end of the court proceedings before a Division Bench headed by Chief Justice Mohit Shah, who decided to hear the matter tomorrow.

In the appeal, Sahara has staked its claim for Rs 2,000 crore, the original price for the buyout. It said the court had erred in holding that Jet was liable to pay the renegotiated amount of Rs 1,450 crore.

Sahara also sought a stay on the order passed by Justice DY Chandrachud yesterday. The Judge had asked Jet Airways to pay the remaining amount of Rs 478 crore (from the purchase price of Rs 1,450 crore) within two weeks to Sahara for the buyout.

The Judge also imposed a 9% interest on Jet Airways for its remaining pending amount of Rs 402 crore to Sahara, which worked out to Rs 478 crore.

Sahara has pleaded in the appeal that 9% interest was less and that they should get more. After the deal was signed, Jet paid Rs 900 crore to Sahara and agreed to pay the remaining amount in four instalments from 2008.

Meanwhile, Income Tax Department slapped a notice of Rs 107 crore on Sahara. While Jet said Sahara was liable to pay this amount as it pertained to period before acquisition of the airline, Sahara argued it was not liable to pay.

On account of the I-T notice, Jet deducted Rs 37 crore and Rs 50 crore, respectively, from two instalments it paid to the Lucknow-based corporate group.