Hindujas withdraw from A-I, IA bid

New Delhi, Aug 31: Without waiting for government’s verdict on qualification of its bids, Hindujas on Friday withdrew from the race for wresting control of both Air-India and Indian Airlines.

"The government is prejudging the issue even without waiting for the law ministry’s comments on our reply to show-cause notice issued by the department of disinvestment. We have been given unjust treatment whereas we expected a more fair deal," chairman of Hinduja group’s flagship company Ashok Leyland RJ Shahaney said in an interview to PTI shortly after pulling out from the race.
Consequently, there is no bidder in the race for Indian Airlines while Tata-SIA is the sole bidder for Air-India amidst speculation that Singapore Airlines was unsure of continuing in the race.

Earlier, Hindujas had withdrawn from the race for stake in IBP Company Ltd and Jessop. Mr Shahaney, who wrote to disinvestment secretary informing about the AL consortium’s decision to withdraw from the race for the two airlines earlier during the day, is understood to have been advised by the ministry to avoid a formal rejection, sources said.

In his communication, Mr Shahaney said: "Disnvestment department seems determined to find reasons to disqualify AL consortium, somehow or anyhow and therefore we believe it is not possible for us to be partners with the government in running the airlines."
Disinvestment secretary Pradip Baijal confirmed the receipt of the letters from AL, but declined to comment.

-- PTI