We didn't terminate Sahara deal: Jet

New Delhi: Jet Airways on Tuesday gave a new twist to the Air Sahara deal issue, saying that it did not terminate the agreement and the deal did not come through as the Government policy on mergers and takeovers of airlines was not clear.

On a day which saw media speculation about a move by the aviation major to settle its problems with Air Sahara out of court, Jet Airways sources told CNN-IBN that the agreement ran into rough weather because of ambiguity of the Government policy. "In any case, the agreement was due to expire on June 21," the sources pointed out.

Terming the controversy as "unfortunate," the Naresh Goyal-controlled Jet indirectly hit out at Sahara saying that it was forced to clarify its position due to 'inaccurate statements made by vested interests'.

"There is nothing more to the actions of the parties of not seeking extension of Share Purchase Agreement beyond commercial considerations," Jet said a week after the deal fell through - a proposed merger that was touted as the biggest aviation deal in India.

Jet Airways also said that the decision not to salvage the $500 million merger deal was purely on 'commercial considerations' and that it was moving the Supreme Court for transfer of litigation in different courts.

A transfer petition is being filed by Jet Airways before the Supreme Court. Litigations have ensued after the expiry of the agreement and that proceedings are pending in the Bombay High Court (initiated by Jet) and Lucknow Courts.

The controversy arose after Air Sahara submitted before the Lucknow District Court that the deal was still 'subsisting', while Jet officials maintained that it had expired.

The Economic Times, citing unnamed sources, said Chairman Naresh Goyal has convened an urgent meeting of the carrier's top management at his London residence to discuss the matter.

The newspaper cited sources as saying that Jet and Sahara have been advised that a protracted legal battle will not benefit either side.

Both Jet and Sahara went to court after the deal collapsed, over money lodged in escrow accounts earlier.

A Sahara group executive was quoted as saying: "Our legal team is working overtime, and it is too premature to talk about out-of-court settlement."

(With inputs from PTI)