The Hinduja Group has reportedly halted its plans to invest in Jet Airways (JAI, Mumbai International) due to the ongoing investigations into the airline and two insolvency pleas recently submitted by minor suppliers, Live Mint has reported.
"The Hinduja Group has taken a back seat now. The promoters of the group feel that it's too risky for them to get involved at the moment, due to ongoing government investigations and the recent insolvency pleas submitted by operational creditors at the National Company Law Tribunal (NCLT)," a source told the newspaper.
Jet Airways is currently under separate investigations for alleged income tax evasion and breach of the Companies Act. The two NCLT proceedings have been initiated by Shaman Wheels and Gaggar Enterprises. The court has adjourned the proceedings to June 13.
Etihad Airways, which was due to be a part of the investment consortium with the Hinduja Group and the Emirati sovereign wealth fund, has reportedly also shelved the plan.
Jet Airways' outstanding debt to banks totals INR80 billion rupees (USD1.15 billion) while its total overhang, inclusive of that owed to its employees, exceeds INR150 billion rupees (USD2.2 billion).
