Govt inspected Jet Airways' Books after allegations of fraud
PrintListen to this Article
This happened after the Registrar of Companies (ROC), an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act, had started probe into Jet Airways books during August last year after the airline delayed the announcement of its quarterly results. Separately a whistle blower had also written to the MCA alleging siphoning of funds by the promoters of the airline.
“..the Regional Director, Western Region, Ministry of Corporate Affairs had, in September 2018, conducted an inspection and sought certain details and documents. Further details/documents were sought in April, 2019," Jet Airways said in a statement to the stock exchanges.
“The Company had provided the required details/documents and no further communication has been received by the Company in this matter," it added.
Earlier this week, the ROC had submitted a report to the MCA highlighting instances of violation of Companies Act and certain unexplained trail of funds in the books of the airline.
Mint had on Friday reported that the ministry of corporate affairs (MCA) may order a probe by India’s fraud investigator after discovering instances of diversion of funds by the promoters of Jet Airways (India) Ltd, a government official said, requesting anonymity.
“MCA will take a call based on the examination of the report. The observations of Companies Act violations are serious in nature and unexplained funds trail does point to fund diversion. The report could be referred to Serious Fraud Investigation Office (SFIO) for a probe of fraud allegations," the person had told Mint.
However, the orders for an SFIO probe haven’t been sent by the MCA yet.
Meanwhile, a bidding contest to find an investor for Jet Airways is set to end on Friday evening. Jet Airways suspended operations on 17 April under more than $1 billion of debt and a cash crunch. Lenders led by the State Bank of India have taken control of the airline after the resignation of its founder and chairman Naresh Goyal. However, any charge of fraud will intensify woes for the grounded airline, which is struggling to find a bidder to infuse the much-needed equity. #casansar (Source - LiveMint)
Category : Corporate Law | Comments : 0 | Hits : 432
Ashneer Grover, former managing director of BharatPe, has moved the National Company Law Tribunal (NCLT), Delhi, alleging opression and mismanagement at the company. The case came up for hearing on December 6, wherein his lawyer sought additional time to address the tribunal on maintainability. The case will be heard next on January 11. According to the plea, reviewed by Moneycontrol, Grover has filed the plea against BharatPe holding company Resilient Innovations and 11 of its directors i...
Over 96,000 companies have wound up their operations in the past five years, according to the Ministry of Corporate Affairs. Businesses opt for winding up for various reasons, including financial unviability. From April 1, 2018 to March 31, 2023, as many as 96,261 companies exited voluntarily, invoking a section in the Companies Act, according to a report in the Mint. According to the data from the ministry, under the Insolvency and Bankruptcy Code (IBC), final resolution orders have be...
Three board members of Ed tech company Byju’s resigned on Thursday, June 22. According to reports, Peak XV Partners' GV Ravishankar, Prosus' Russell Dreisenstock and Chan Zuckerberg Initiative's Vivian Wu have stepped down from their responsibilities from the board. The company spokespersons have denied reports dismissing them as speculative. Meanwhile, The Ken has reported that Byju’s auditor’s Deloitte Haskins & Sells had also stepped down with immedi...
The Enforcement Directorate has accused Amway India Enterprises of running a multi-level marketing scam, while attaching its assets worth Rs 757 crore on Monday, including its factory in Tamil Nadu’s Dindigul district and bank balances of Rs 346 crore. The agency said its money trail against Amway revealed that the company had collected Rs 27,562 crore from its business operations from 2002-03 to 2021-22. Out of this, Amway paid a commission of Rs 7,588 crore to its distributors and m...
The Insolvency and Bankruptcy Board of India (IBBI) has issued a fresh set of rules to fast track voluntary liquidation by companies under the Insolvency and Bankruptcy Code (IBC). The amendments to the IBBI (voluntary liquidation process) regulations notified on Tuesday sharply cuts short the time allowed to complete various procedures, showed an official order. As per the new regulations, the timeline for preparation of list of stakeholders by liquidators has been shortened to 15 day...
Comments