Centre orders probe into Jet Airways over mismanagement, siphoning of funds

Ministry of Corporate Affairs on Thursday ordered a probe into the debt-laden Jet Airways over alleged mismanagement, including siphoning of funds.

The airline, which had halted operations in April, earlier this year, after running out of cash, owes over Rs 8,500 crore to the State Bank of India and 25 other financial creditors.

The grounded airline also beholds over Rs 13,000 crore to hundreds of vendors and 23,000-odd employees.

On June 17, the SBI-led consortium of lenders had decided to take the airline to bankruptcy courts after failing to cobble together a revival plan despite working on it for over five months. Following this, the National Company Law Tribunal (NCLT) had admitted the insolvency application filed by SBI against Jet Airways on June 21.

The Bench presided by V P Singh and Ravi Kumar Duraisamy, while admitting the plea, had said that the matter is of national importance.

The tribunal had also directed resolution professional, Ashish Chhawchharia of Grant Thornton, to complete the process within three months as against 180 days (six months) prescribed in the Insolvency and Bankruptcy Code (IBC).

The matter will be further taken up tomorrow (July 5) for the filing of a progress report by the resolution professional.

Last week, the National Stock Exchange decided to remove the airline from daily trading, which took effect from June 28.