Jet Airways to get Rs 50 cr as inter-corporate deposit for certain expenses

Jet Airways, which is working to restart operations that were grounded nearly three years ago, will receive Rs 50 crore as inter-corporate deposit from a company owned by Jalan group for certain expenses.

Murari Lal Jalan and Florian Fritsch consortium's resolution plan for the grounded carrier was approved by the National Company Law Tribunal (NCLT) in June 2021 under the insolvency resolution process.

As efforts are on to restart services of Jet Airways, Orion IT Parks Pvt Ltd -- whose shareholders are Murari Jalan and Ankit Jalan -- will extend an Inter-Corporate Deposit (ICD) of Rs 50 crore.

Ankit Jalan is a member of the monitoring committee constituted under the resolution plan for the airline.

Jet Airways (India), acting through its monitoring committee constituted under the resolution plan, on February 9 accepted a letter dated January 31 from Orion IT. The letter pertains to Orion IT making an ICD of Rs 50 crore without any interest payable by the airline, according to a regulatory filing.

The letter is for Jet Airways to receive an unsecured ICD from Orion IT "for meeting certain expenses (including such expenses which are required to be incurred for the fulfilment of the conditions precedent under the resolution plan and/or for the re-commencement of the operations of the company)".

The ICD is unsecured and the obligations for repayment of the deposit would not commence, subject to certain conditions. The conditions include the implementation of the terms of the resolution plan and fulfilment of all liabilities towards the financial creditors having been met by the resolution applicant.

Till these conditions are met, "Orion IT shall also not take any action to recover the deposit," the filing said.

The ICD letter is governed by Indian laws and is without prejudice to the rights of the successful resolution applicant and rights of the assenting financial creditors under the resolution plan, it added.

Bogged down by financial woes, Jet Airways shuttered services in April 2019.