Jet Airways can withdraw amount from escrow a/c

Mumbai, Sept 22: The Bombay High Court today allowed Jet Airways to withdraw Rs 1500 crore from the escrow account but the interest of that amount would go to Sahara Airways.

Passing an order today, Bombay High Court judge D K Deshmukh allowed Jet Airways to withdraw Rs 1500 crore from the escrow account and directed the airways to furnish a bank guarantee of like amount in the court, in case court orders went against them.

Justice Deshmukh, in his order, said that amount, accruing as interest, would go to Sahara Airways.

The court has also appointed former Chief Justice of India S P Bharucha as arbitrator and, then, adjourned the hearing till October eight.

It may be recalled that Jet Airways' bid to acquire Sahara Airways, a deal which was fixed at Rs 2,300 crore, had failed as Jet Airways Chief Naresh Goel had failed to get all the security clearances as specified by the Share Purchase Agreement before the expiry date.

Justice Deshmukh had admitted the case earlier this month, after it was transferred from the Supreme Court for arbitration.

UNI