With only a week left before the escrow account expires, the two airlines may have to hold last-minute parleys once again.
Government yet to clear Jet Airways chief Naresh Goyal's name on board.
BANGALORE: The Jet Airways-Air Sahara deal seems to be headed for another patch of turbulence with the government delaying the security clearance of Jet's chairman Naresh Goyal as the head of the merged entity, even as it has cleared the names of other directors - Jet executive director Saroj Dutta, former advisor to finance minister Vijay Kelkar, lyricist Javed Akhtar and Victoriano P Dunca.
With only a week left before the escrow account that has been set up to facilitate the deal expires (June 23), the two airlines may have to hold last-minute parleys once again (like in March, to extend the escrow a/c) to tide over the crisis if the Goyal's approval does not come by then.
"Yes, it is true Naresh Goyal has yet to get the government clearance," confirmed Datta to DNA Money.
In the event of Goyal not getting the ministry of home affairs nod by June 23, a Jet spokeswoman said, "I presume, officials of both the airlines will have sit and decide on what should be done. We are, however, being positive about it. Like other directors' approvals have come through, we expect Goyal's approval also to come through soon."
In March, the term of escrow account was extended by 90 days after delays in securing approval from the government for the share purchase agreement, holding pattern and security clearance of the board of directors that has been sought by Air Sahara. It seems the episode would be repeated.
The government is reportedly hesitating in clearing Goyal's name on the board because of queries by the US Department of Transportation (DoT) on Goyal's alleged links with underworld.
Last year, Jet's plans to start operations out of the US hit an air pocket after an US namesake (Jet Airways Inc) filed objections with US DoT alleging it had AL Qaeda and Dawood links.
Jet has made upfront payment of Rs 500 crore for Sahara, which it took over for an enterprise value of Rs 2,300 crore (revised to Rs 2,000 crore) in January this year. It is running the acquired airline as a subsidiary till the integration process is completed.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}