Handed court Rs 275cr, will pay Rs 203cr in two weeks: Jet

Jet Airways was supposed to pay Sahara Rs 1,450 crore in four installments, from March 2008 to March 2011. According to the deal terms, Sahara had told Jet that if there were any undisclosed liabilities, then there would be an indemnity obligation, meaning that Sahara would reimburse them.

The Bombay High Court has said that Jet Airways has defaulted on payment obligations to Sahara and will have to pay the latter Rs 478 crore and an addition 9% interest in two weeks. The court has said that since Jet has made a default, it will also have to pay an interest of 9% per day. Shiv Kumar the CFO of Jet Airways tells CNBC-TV18 that he sees the court ruling as good news. He says that interest costs of only Rs 116 crore was left to be paid to Sahara now. Kumar says that Rs 275 crore has already been paid and is with the court.