Mismanagement of Jet to be probed: Corporate Ministry

Mismanagement of grounded airlines Jet Airways will be investigated by Corporate Affairs Ministry as the ministry has ordered a probe over alleged mismanagement including siphoning of funds.

The investigation will cover the affairs of Jet Airways along Jet Privilege Limited, Jet Lite, Air Jet Ground Services, Air Jet Engineering, Air Jet Training Services, Air Jet Allied and Securities. It has bee issued on July 4, 2019 is under Section 212(1) C of Companies Act.

The Airline has grounded its operations due to heavy debt, which is continuing to rise.

The airline is having a negative net worth for long and has run a loss of over Rs 13,000 crores in the past few years. It has over Rs 36,500 crore of dues and being service company negligible assets to recover.Apart from banks, the airline also would have to pay over Rs 10,000 crores to its hundreds of vendors, primarily aircraft lessors and over Rs 3,000 crores to its employees, which have not been paid since March.

Though there have been attempts for airline’s bailout but even after several meeting with all the stakeholder, no concrete decision has been taken so far.

Also Read: Help pours in for Kerala; Indigo Airlines announces special flights

Meanwhile two members of Jet Airways governing body resigned from their post and several employees have switched over their jobs to competitor aircraft. Also the Delhi High Court on Friday will hear plea of former Jet Airways Chairman Naresh Goyal’s seeking quashing of look-out circular issued against him.