Shares of Jet Airways were locked in the lower circuit band of 5 per cent at Rs 22.2 on the BSE on Monday after reports suggested founder Naresh Goyal was under Serious Fraud Investigation Office's (SFIO) lens for siphoning off funds. In comparison, the S&P BSE Sensex trading 0.16 per cent lower.
According to a Business Standard report, The probe agency has found that the company’s vast network of sales agents across the globe was not independent of Jet Airways and several of these entities were linked to its founder, Naresh Goyal.
“The money has been shown as outgoing payments to these agents but in many cases it was just a front for the company itself… There are many irregularities under investigation,” a person close to the matter said. READ REPORT HERE.
The debt-laden airline suspended operations on April 18, 2019 for want of funds. It was then declared bankrupt and has been looking for resolution since June. The grounded Jet Airways owes over Rs 8,000 crore to its lenders. Besides the lenders, the airline is estimated to have a total liability of about Rs 25,000 crore which includes dues of operational creditors.
Revival seems unlikely because Grant Thornton, the resolution professional appointed to run the bankruptcy process, has been unable to get a serious bidder to take over the company. Sources said banks were mulling liquidation and discussions on this had started.
The share price had continuously fallen from Rs 265 levels in April 2019 to Rs 15.45 on October 18, 2019, post which it has been hitting the upper circuit on a regular basis. The stock has gained 45 per cent at the bourses since October 18, primarily on announcement that the company shall be the first to undergo insolvency proceedings under the Cross Border Insolvency Protocol included under the Insolvency and Bankruptcy Code (IBC). READ MORE