"We have referred the Jet-Sahara deal to DGIR, which will submit its report in the next three weeks," MRTPC chairman Bhupinder Kumar Rathi told PTI.
Asked whether the Commission would be issuing notice to the buyer over the matter, he said this would depend on the recommendations of the report.
"If the DGIR reports cartelisation of the aviation sector due to the buyout, then we will issue notice and the trial will formally start," he said.
No more cheap airline tickets?
Nearly a month after the mega deal was clinched in January this year, BJP MP Uday Singh had written a letter to Prime Minister Manomohan Singh urging that MRTPC should look into it in the interest of probity and transparency.
He had also expressed the apprehension that the buyout could "create a worrisome monopoly entity in the sensitive aviation sector in domestic and foreign route."
According to sources, the PMO had referred the matter to the Ministry of Company Affairs, which forwarded it to MRTPC. Immediately after the deal, announced on January 19 2006, MRTPC chairperson B K Rathi had said that the deal did not appear to warrant any immediate probe, as there seemed to be no threat of any monopolistic or restrictive nature.
He had, however, said the commission would wait for the completion of the entire process related to the takeover, including regulatory approvals. "All the formalities are yet to be completed and only after that we will get details on the matter," he said.
Nearly a month after the deal, BJP MP Uday Singh had written a letter to Prime Minister Manomohan Singh urging that MRTPC should look into the deal in the interest of probity and transparency.
The latest move by MRTPC appear to have been prompted by the demand by BJP, with its MP saying that "the buyout, if allowed to go through, will create a worrisome monopoly entity in the sensitive aviation sector in domestic and foreign route."
Aiming to become the single largest aviation player, Jet Airways announced the takeover of Air Sahara for $500 million in cash, a move that would help it garner close to 50 per cent market share.
After clinching the deal, Goyal had said in Mumbai that while no liability would be transferred to Jet's balance sheet, the issue of international flying rights to his company would be subject to regulatory approvals.
Click here to search for lowest airfares!
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group.