According to an official, the Tata Group’s takeover of the national carrier Air India, to be delayed by almost another month due to incomplete procedures and formalities taking more time than expected.
According to an official, the handover of Air India to Tata Group has to be delayed by another month because completion of the procedures are taking longer than expected.
The Indian Government accepted the highest bid for Air India in October, which was made by Tata Sons Company for 100% shares of Air India and Air India Express. This also comes with 50% share in the ground handling company, AISATS. According to the deal, Tata Group would pay the government ₹2,700 crores in cash by December.
According to the terms and conditions, the formalities were supposed to be completed within 8 weeks, although the buyer and the seller can manually change the date according to their need. The official said that these formalities will be completed by January, without giving a specific date, as some regulatory approvals and certain formalities yet to be completed.
On October 25, the agreement was signed between Tata Sons and the government for the sale of Air India for ₹18,000 crore. Tata will have to pay an amount of ₹2,700 crore in cash and takeover the debt of ₹15,300 crore that Air India has on its head. Tata Sons beat the offer given by SpiceJet’s promoter Ajay Singh for ₹15,100 crore and decided to take the loss making national carrier under them.