The Indian Ministry of Corporate Affairs (MCA) has launched a preliminary probe into Jet Airways (JAI, Mumbai International) for the alleged syphoning off of funds, the Financial Chronicle has reported. The carrier said it was not aware of such an investigation.
"We hereby clarify that the Company has not received any such communication from the Ministry of Corporate Affairs in this regard," Jet Airways spokesperson told ch-aviation.
The debt-laden carrier has been facing growing regulatory pressure since it delayed the publication of its quarterly results earlier in August. Jet Airways' board is now due to meet and discuss the results on August 27.
Separately, the Ministry of Finance received a letter from a whistleblower, Arvind Gupta, alleging that Jet Airways syphoned off as much as INR51 billion rupees (USD730 million) through deals between the airline and other companies with the same owners. The MCA's probe is not related to the complaint.
Gupta earlier this year alerted the authorities about another suspected high-profile fraud case over loans granted by ICICI Bank to consumer electronics and home applicances group Videocon.
Jet Airways is also continuing its search for fresh capital. It reportedly discussed an investment of at least USD100 million from TPG Capital, but talks are still at an early stage and far from being concluded.
The carrier had a total debt of INR81.5 billion rupees (USD1.2 billion) as of March 31, 2018.
