Jet Airways goes to Court

Jet Airways today moved the Bombay High Court urging for replacement of bank guarantee of ICICI bank with State Bank of India (SBI) in regard to its dispute with Sahara Airlines over the collapsed take over deal worth Rs 2,300 crore. A high court bench deferred the matter for arguments. Jet Airways contended that the terms and conditions of SBI were more favourable to them compared to those of ICICI Bank. In an interim order in September, the court had allowed Jet Airways to withdraw Rs 1,500 crore paid as advance in an escrow account opened at ICICI Bank's Nariman Point branch here against a bank guarantee of the same amount. Jet Airways had signed an agreement earlier this year to acquire 100 per cent equity stake in Air Sahara.

As part of the deal, Jet paid Rs 180 crore for revival of Air Sahara and Rs 500 crore for Air Sahara shares, besides depositing Rs 1,500 crore in the escrow account opened for the purpose. After the deal fell through as Jet failed to get regulatory clearances by the deadline of June 21 as per the agreement, Sahara moved a court in Lucknow seeking to bar Jet Airways from operating the escrow account. The Supreme Court had in August transferred two petitions filed by Sahara in a Lucknow court to the Bombay High Court for hearing. Jet Airways had already filed two separate petitions before the Bombay High Court.

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