Sahara drags Jet Airways to court; stock down 5%

MUMBAI: Shares of Jet Airways took a beating on Tuesday after Sahara India Commercial Corporation moved an application in the Bombay High Court for executing the award of the arbitrator in the arbitration relating to take over of Sahara Airlines.

Sahara India filed an execution application on March 26 in relation with part default of the yearly instalment due from Jet Airways and the Court registered the case on Tuesday.

Jet Airways had purchased Sahara Airlines (now Jetlite) for Rs 1,450-crore and paid Rs 900-crore upfront. Over the next four years (beginning 2007), the private air-carrier had agreed to pay Rs 137-crore as yearly instalments. Any default from Jet means that Sahara can claim Rs 2,000-crore from the former.