An alert to immigration authorities had resulted in Jet founder Naresh Goyal & wife Anita being detained at Mu... Read More

NEW DELHI: The government will decide on whether to refer the grounded Jet Airways to the Serious Fraud Investigation Office after a new minister takes charge later this week as an inspection by the registrar of companies showed alleged irregularities.

The ministry of corporate affairs (MCA) is of the view that the case needed to be referred to the SFIO for a thorough probe but was awaiting a go-ahead from the new government, which assumes office on Thursday, sources told TOI.

The registrar of companies and the regional director had submitted their report to the ministry a few weeks ago and there has been speculation of the beleaguered company being referred to SFIO.

Although there is no formal investigation against the company by SFIO, sources said that other agencies are also looking at the case, resulting in an alert being sent to immigration authorities which resulted in Jet Airways promoter and founder Naresh Goyal and his wife Anita being detained at the Mumbai airport last week. The couple had boarded an Emirates flight but were called back to the terminal.

The sources said that the inspection has suggested diversion of funds with government agencies worried over the sudden plunge in the airline’s fortunes over the last few years. “The inspection has raised certain red flags and pointed to possible irregularities, which needs to be probed in detail,” said an official.

They added that the investments into Jet subsidiaries, including loans extended by the airline, needed to be probed thoroughly before a clean chit could be given. In addition, the company’s equity structure, which has been a source of constant worry, for many policymakers will also be looked at in detail.

Already, a forensic audit has been carried out, which will also be looked at by SFIO, which is looking at a slew of high profile cases ranging from IL&FS to Malvinder and Shivinder Singh promoted entities such as Fortis and Religare and Nirav Modi ’s outfits.

Government officials have, however, maintained that the role of banks is currently not under the scanner as the airline had been repaying loans on time until it ran out of cash at the start of 2019. Jet has outstanding liabilities of over Rs 20,000 crore and owes nearly Rs 8,500 crore to banks led by State Bank of India. Besides, it is yet to deposit deductions such as provident fund contribution of employees.

