Jet Airways: Modi Government Orders SFIO Probe Against Defunct Airline Over Alleged Fund Mismanagement

New Delhi, July 4: The Modi government has reportedly ordered an SFIO probe into the affairs of now-defunct Jet Airways. The Ministry of Corporate Affairs has directed the Serious Fraud Investigation Office (SFIO) to begin a probe into Jet Airways over alleged mismanagement of funds. Jet Airways founder Naresh Goyal is likely to be summoned by the SFIO in connection with the probe.

The government ordered an SFIO probe after the ministry’s inspection report had found large-scale irregularities, including diversion of funds, news agency PTI reported. Faced with an acute financial crunch,  Jet Airways had suspended operations on April 17. The government may also oppose Naresh Goyal’s plea in the Delhi High Court against a Look Out Circular (LOC) that has been issued against him by the ministry.

Goyal's plea is to be heard on Friday by Justice Vibhu Bakhru. Goyal and his wife Anita were off-loaded from a London-bound flight in Mumbai minutes before their aircraft was about to take off for London via Dubai due to the Look Out Circular. The couple had resigned from the board of Jet Airways, which the former founded 26 years ago, in March following a debt restructuring plan. He had also resigned as the airline's chairman.

The ministry has also issued a Look Out Circular against Jet Airways' former Chief Executive Vinay Dube. He has also been barred from leaving India. The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20.

Thousands of the airline's employees have not been paid their salaries and the banks have also been left high and dry.

(The above story first appeared on LatestLY on Jul 04, 2019 10:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).