New Delhi, July 29 (IANS) The Delhi High Court on Friday ordered the original promoter of budget carrier SpiceJet Ajay Singh to deposit around Rs 580 crore in an alleged dispute over the transfer of ownership accord of the airline with the Marans of Sun Group.
According to the court’s order, the amount has to be deposited with it, in five equal installments.
The Marans, who had acquired controlling stake in SpiceJet from Ajay Singh have contended that under the transfer of ownership deal entered in early 2015, Singh had to issue them redeemable warrants.
The warrants were in lieu of Rs 690 crore that the Marans’ had invested in the budget passenger carrier.
The court ordered both the parties to form an arbitral tribunal which has to give a final decision on the matter within 12 months of its formation. Until the final decision is received, the amount worth around Rs 580 crore would remain in the court’s custody.
When asked to comment, an official with the airline’s chairman’s office said while Singh was out of town, a comment would not be appropriate at this point of time.
The official elaborated that the matter was sub judice and that the order was yet to be received and read out for any further observation.
The alleged dispute dates back to early 2015, when Marans transferred their entire share holding in the budget carrier to Singh.