Jet-Sahara deal to be evaluated
India's anti-trust commission has called for a detailed evaluation of $500 million deal.india Updated: Mar 09, 2006 22:48 IST
India's anti-trust commission has called for a detailed evaluation of $500 million deal through which Jet Airways had bought out Air Sahara in January.
According to sources in the department of company affairs, Bhupinder Kumar Rathi, chairman of Monopolies and Restrictive Trade Practices Commission (MRTPC) referred the case to the Director General Investigations and Registrations (DGIR).
The DGIR is expected to evaluate the deal and submit its report in the next three weeks.
The recommendations made by the DGIR in its report would decide the fate of the acquisition.
Jet is planning to merge the two companies under the Jet flagship.
Jet's plan, however, could be in trouble if the DGIR observes "cartelisation of the aviation sector" due to the buyout.
Under such circumstance notices could be issued to Jet.
Nearly a month after the deal was clinched, BJP MP Uday Singh had written to Prime Minister Manmohan Singh urging that MRTPC should look into the probity and transparency of the deal.
According to sources, the Prime Minister's Office had referred the matter to the ministry of company affairs, which forwarded it to MRTPC.