NCLAT to hear Jet creditors’ case on 9 Nov
- Jet Airways stopped flying in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium
New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday deferred hearing in a plea by Jet Airways' Committee of Creditors (CoC) against the transfer of the airline's ownership to Jalan-Kalrock Consortium (JKC) to 9 November.
On 4 October, lenders of the grounded airline had voiced concerns about the consortium's source of funding, hinting at potential money laundering. The CoC, led by State Bank of India, had submitted a plea to the Mumbai branch of the National Company Law Tribunal (NCLT), inquiring into the origin of the funds, alleging undisclosed and potentially illicit sources.
According to the lenders, the resolution plan requires the money to come from JKC and legitimate sources.
Lenders also contested an NCLAT order, dated 28 August, in the Supreme Court, which had approved the consortium's payment plan. The plea had contested the tribunal's approval to JKC disbursing ₹150 crore of the committed ₹350 crore via a performance bank guarantee.
In a subsequent 9 October hearing in the top court, lenders sought confirmation on allegations of fraud investigations against JKC's investor, Florian Fritsch, by European entities. JKC countered, emphasizing their compliance in depositing the promised ₹350 crore.
Fritsch is facing fraud and money laundering scrutiny in Liechtenstein, where officials reportedly confiscated luxury items linked to his Jet Airways investment.
The CoC has been flagging concerns with JKC's resolution offer. On 5 July, they conveyed to the Supreme Court potential advantages in winding up Jet Airways, highlighting non-repayment and lack of investment. Lenders have poured in public funds worth around ₹400 crore into the beleaguered airline.
Jet Airways stopped flying in April 2019 after running into financial difficulties. However, ownership transfer has been hanging fire amid continuing differences between the lenders and the consortium.
According to the January order from the Mumbai bench of the tribunal, the effective date of the resolution plan was set for 16 November. Consequently, the consortium had six months from that date to make payments to the lenders.
On 22 June 2021, the NCLT approved the resolution plan for Jet Airways submitted by the Jalan-Kalrock consortium. The consortium includes UAE-based non-resident Indian Murari Lal Jalan, who would hold shares in Jet Airways in his personal capacity, and Florian Fritsch, who would hold shares through his investment holding company Kalrock Capital Partners Ltd, Cayman.
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First Published:1 Nov 2023, 08:22 PM IST
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