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Our Bureau

Interest accrued on the amount will go to Sahara

Mumbai , Sept. 22

Scoring another victory over Sahara Airlines, Jet Airways was allowed by the Bombay High Court on Friday to withdraw the Rs 1,500 crore deposited by it in an escrow account with ICICI Bank for acquiring Sahara, against a bank guarantee for the same amount.

Mr Justice D.K. Deshmukh, passing the order in all the four cases relating to the Jet-Sahara dispute, said that Jet could withdraw the amount. The interest accrued on the amount will go to Sahara, he said. An arbitration tribunal will decide the escrow account formalities, the hearing being posted for October 9. Mr Harish Salve, Counsel for Jet Airways, speaking to the media outside the court said that Jet Airways would submit the bank guarantee (for the same amount) on Monday.

Escrow Account

Jet Airways in January 2006 announced its intention to acquire 100 per cent equity stake in Sahara Airlines for Rs 2,000 crore. Subsequently, the company advanced Rs 500 crore to the shareholders of Sahara Airlines, against a pledge of 100 per cent of the airline's shares and the personal guarantee of the Sahara Chief, Mr Subrata Roy, while leaving Rs 1,500 crore in Escrow.

Jet Airways stocks closed at Rs 653.95 on the BSE, a rise of 2 per cent from Thursday's closing price.

Related Stories:
Bombay High Court to hear Jet-Sahara dispute
Jet Airways defers plans to raise $800 m
Letter from Jet, Sahara could have salvaged the deal

More Stories on : Airlines | Courts/Legal Issues | Jet Airways (India) Ltd

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