NEW DELHI: Jet sources said on Tuesday that Sahara has already leased its aircraft to them which could be held back unless Sahara returns the advance of Rs 500 crore and Rs 80 crore spent on capital expenditure.
Sahara sources told that Jetï¿½s delay in honouring the deal was in ï¿½ï¿½ bad faithï¿½ ï¿½ as four of its nominees to the Sahara board have already been cleared by government. But Goyalï¿½s clearance is awaited. Sahara sources said: ï¿½ï¿½ Four directors are enough to take charge of the airline and run it. Goyal can join the board as and when his clearance comes.ï¿½ï¿½ ...
Goyalï¿½s contention is, however, contested by Sahara sources who said Jet did not walk into the deal blindfold. They said that Jet agreed on the price on the basis of a due diligence done by Ernst & Young. They even complained that Jet had not responded to Sahara managementï¿½s repeated attempts to meet and sort out the issues, but instead leaked Goyalï¿½s letter to the media.
He said that the Sahara group is in deep financial trouble and this deal with Jet would have bailed the group out. ï¿½Why should we help a party directly or indirectly which is trying to pull the rug from under our feet?ï¿½ he asked. ...
The government has allowed Mr Goyal to set up an airline and now how can his presence on the air linesï¿½ board can be a security concern?ï¿½ another Congressman asked. ï¿½There is much more to it than meets the eye,ï¿½ he said.
|Quoting Blrsea (Reply 2):|
Also, I am personally not sure that Naresh Goyal doesn't have dubious links to the underworld. Money talks in India, and so he might be able to setup the airlines, but that doesn't give him a clean chit. There is still some secrecy
|Quoting Jaysit (Reply 4):|
Between Dawood and Indira Gandhi's Congress, I'd put my bets on the latter for greater corruptibility.
|Quoting CHI787ORD (Reply 9):
Yes... what is the future of ATQ-LHR?
|Quoting WestWing (Reply 11):|
The ATQ-LHR schedule that was on this page has been removed.
The collapse of the deal for Jet Airways to acquire Air Sahara could have been avoided if both the airlines had sent a letter to the Directorate-General of Civil Aviation (DGCA) agreeing to constitute the board with four persons, sources in the aviation industry told Business Line today.
"In early June, the DGCA asked that the two parties to send separate letters showing their willingness to set up the board with four people. There was no response to this communication. Even now there is no formal communication from Jet Airways on the deal although the share purchase agreement (SPA) for the deal has lapsed," officials closely connected with the deal said.
Sources maintain that the Jet Airways claim of discovering more liabilities after coming on to Air Sahara board was not correct.
"Detailed vendor due diligence was done. A complete report on the balance sheet and the operations of the airline was available. This was also discussed at a board meeting attended by the entire board in late January. In fact the indemnification clause in the SPA provided for indemnification of liability not disclosed in vendor due diligence. The report was based on a joint certification by Ernst &Young and Chaturvedi and Shah (the auditors of Sahara and Jet Airways, respectively). After that anything more that shows up is a subject matter of indemnification, which means that Air Sahara would have to make good any other liabilities that arise. So where is the question of suddenly discovering huge liabilities," sources said
In fact both E&Y and Chaturvedi and Shah are said to have certified that the indemnification amount was less than $10 million.