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Centre orders probe against Jet Airways over alleged fund mismanagement

The Centre has ordered a SFIO probe into the affairs of now defunct Jet Airways after finding instances of fund diversions and large-scale irregularities, sources said on Thursday. The Ministry of Corporate Affairs (MCA) has asked the SFIO to probe the alleged fund diversion and writing off of investments by Jet Airways.

India TV News Desk India TV News Desk
New Delhi Updated on: July 04, 2019 23:23 IST
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Jet Airways

The Centre has ordered a Serious Fraud Investigation Office (SFIO) probe into the affairs of now defunct Jet Airways after finding instances of fund diversions and large-scale irregularities, sources said on Thursday.

The Ministry of Corporate Affairs (MCA) has asked the SFIO to probe the alleged fund diversion and writing off of investments by Jet Airways.

The fresh investigation follows recommendation given by MCA's Mumbai regional office after inspecting the airline's books. According to the sources, the ministry's inspection report had found large-scale irregularities, including diversion of funds.

Besides, the government would oppose airline founder Naresh Goyal's plea in the Delhi High Court seeking lifting of the travel ban.

ALSO READ | HDFC wants NCLT to keep Jet Airways headquarters out of resolution plan

The sources said Goyal is likely to be summoned by the SFIO. 

SFIO comes under the Corporate Affairs Ministry.

Faced with an acute financial crunch, Jet Airways stopped operations in mid-April. With efforts to find investors failing to take off, the airline is now under insolvency proceedings.

The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20.

In its February report, the Income-Tax department had already found tax evasion of over Rs 600 crore at Jet Airways.

ALSO READ | Insolvency proceedings initiated against Jet Airways

(With inputs from agencies)

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