Business Today
Loading...

Govt orders SFIO probe against Jet Airways

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

twitter-logo PTI        Last Updated: July 5, 2019  | 07:57 IST
Govt orders SFIO probe against Jet Airways
According to the sources, the ministry's inspection report had found large-scale irregularities, including diversion of funds.

The government has ordered an SFIO probe into the affairs of now defunct Jet Airways after finding instances of fund diversions and large-scale irregularities, sources said on Thursday.

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

The sources said Goyal is likely to be summoned by the Serious Fraud Investigation Office (SFIO), which comes under the Corporate Affairs Ministry.

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

According to the sources, the ministry's inspection report had found large-scale irregularities, including diversion of funds.

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.

Also read: Budget 2019: Nirmala Sitharaman's PSU problem

Also read: Low yield, high operating cost among aviation sector challenges: Puri

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close