Jet threatens to call off Sahara deal

India's largest private carrier Jet Airways is understood to have threatened to withdraw from the Rs 2,300 crore (Rs 23 billion) deal to acquire Air Sahara if Sahara Group did not get all the requisite approvals from the government, including security clearances, before the expiry of escrow account on June 21.

Jet Airways Chief Naresh Goyal had shot off a letter to Sahara, expressing unhappiness and concern over the delays and turn of events.

"We are still waiting for all regulatory approvals to be in place," Jet Airways said in an official statement, while Sahara officials declined to comment.

Jet-Sahara deal under a cloud

But sources in the Sahara group said it has already obtained clearances for four nominees of Jet Airways to be put on Air Sahara Board and communicated the same to Jet Airways for reconstitution of the Board.

They, however, wondered why Sahara group should be held responsible if the government did not give permission to Naresh Goyal to join the Board of Air Sahara. They were also puzzled as to how security has become an issue for Goyal, who is already operating his own airline in the country.

On March 23, the two sides had agreed to extend the terms of share purchase agreement by 90 days without changing the enterprise value of the deal.

The deal had come under pressure owing to absence of necessary clearances from Directorate General of Civil Avaition.