Jet Airways planes are seen parked at the domestic airport, in New Delhi. (PTI) 

Government Orders Fraud Probe Against Jet Airways

The government has ordered a Serious Fraud Investigation Office probe into the affairs of now defunct Jet Airways (India) Ltd. after finding instances of fund diversions and large-scale irregularities, sources said.

Besides, the government would oppose airline founder Naresh Goyal's plea in the Delhi High Court seeking lifting of travel ban.

The sources said Goyal is likely to be summoned by the SFIO, which comes under the corporate affairs ministry.

Faced with acute financial crunch, Jet Airways stopped operations in mid-April. With efforts to find investors failing to take off, the airline is now under insolvency proceedings.

According to the sources, the ministry's inspection report had found large-scale irregularities, including diversion of funds.

The cash-strapped company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal admitted an insolvency petition filed by the State Bank of India on behalf of 26 lenders on June 20.

Also read: Keep Jet Airways Headquarters Out Of Resolution Plan, HDFC Tells NCLT 

Bloomberg Quint

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