New Delhi, June 27: With the debt-ridden Jet Airways invited claims from all creditors to the grounded airline, Union Civil Aviation Minister Hardeep Puri on Thursday said that Government of India has no role in raising funds for Jet Airways.
Replying to a question in the current Monsoon Session of the Lok Sabha, Puri said, as the news agency ANI said, "Government of India has no role in raising funds for Jet Airways, as it is an internal matter of the airline." Majority of Jet Airways' Flying Rights Temporarily Distributed to Other Indian Airlines: Govt
The Union Minister was of the opinion that the possible solution to the Jet Airways crisis is through Insolvency Bankruptcy Code. He said, "Revival of Jet Airways only possible under Insolvency Bankruptcy Code. Mobilising financial resources and ensuring efficient operations as per business plan are the responsibility of the airline."
Earlier on Monday, the cash-crunched and grounded Jet Airways called the creditors to submit their claims with proof on or before July 4, to the interim resolution professional. Resolution professional Ashish Chhawchharia of Grant Thornton said, as PTI quotes, "The creditors of Jet Airways are hereby called upon to submit their claims with proof on or before July 4, to the interim resolution professional. Financial creditors shall submit their claims with proof by electronic means only ."
It is to be known that the case of Jet Airways was admitted to the National Company Law Tribunal (NCLT), months after the lenders - owning the airline since March 25 with 51 percent stake - mentioned to NCLT that they could not find a buyer.
Jet Airways owes over Rs 8,500 crore to a consortium of 26 banks led by State Bank. Apart from this, over Rs 13,000 crore to the tens of hundreds of vendors are owned and as an effect, around 23,000-odd employees have been affected.
(The above story first appeared on LatestLY on Jun 27, 2019 05:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).