The muti-million dollar deal for takeover of Air Sahara by India's largest private airline Jet Airways broke down late Wednesday night.
The deal fell through because Jet Chairman and Managing Director Naresh Goyal failed to secure necessary clearances from the directorate general of civil aviation required for joining the board of Air Sahara.
Despite Sahara's offer for extending the deadline for the deal by 15 days, Jet failed to respond positively.
As a result, management control of Air Sahara would be restored to the Sahara group.
Air Sahara had earlier in the day moved a court in Lucknow seeking to restrain Jet Airways from accessing the escrow account, in which Jet had deposited money as advance for the acquisition.
Jet Airways also moved Mumbai high court seeking to stop Air Sahara from withdrawing the money from the same account.
While Sahara claimed that Rs 1,500 crore was lying in the account, the Naresh Goyal-promoted airline submitted before the Bombay high court that it had transferred Rs 500 crore to the account.
More from rediff