Jet Airways row: Delhi HC to hear tomorrow Naresh Goyal's plea seeking quashing of Look Out Circular

The Delhi High Court is scheduled to hear on Tuesday a petition filed by former Jet Airways chairman Naresh Goyal seeking quashing of the Look Out Circular (LOC) issued against him.

Justice Vibhu Bakhru had recused himself from hearing Goyal's plea when the matter came up on July 5.

The circular was issued against Goyal by the Serious Fraud Investigation Office (SFIO) under the Corporate Affairs Ministry after it found several irregularities in the aviation company, which had halted operations in April this year due to acute cash crunch.

On May 25, Goyal and his wife Anita were denied permission to travel abroad.

The duo was flying out of India from Mumbai on an Emirates flight when they were restricted from leaving the country by the immigration authorities.

On March 25, Goyal, the then Jet Airways chairman, had stepped down from the post. He had set up the airline 25 years ago.

According to the lawyers, the SFIO had also summoned Goyal to join the probe on July 10.

The ministry had earlier asked the SFIO to investigate Jet Airways for alleged syphoning of funds and misappropriation of accounts and file its report within six months.

Goyal has also challenged the several office memoranda issued by the Union Ministry of Home Affairs.

Jet has been suffering bruising competition from low-cost airlines, fluctuating crude prices and a weak rupee. The airline has over one billion dollars in debt and has to repay money to banks, lessors of planes and suppliers besides clearing pending salaries of pilots and other staff.