5 July 2019: Jet Airways stock hit its lower circuit limit of 5 per cent in Friday’s trade on reports that the government has ordered an SFIO probe into the affairs of now defunct airline after finding instances of fund diversions and large-scale irregularities, sources told PTI.
According to the sources, the ministry’s inspection report had found large-scale irregularities, including diversion of funds. The government is likely to oppose airline founder Naresh Goyal’s plea in the Delhi High Court seeking lifting of travel ban, the report suggested.
Following the development, the scrip hit its lower circuit at Rs 62.80.
The sources said Goyal is likely to be summoned by the Serious Fraud Investigation Office (SFIO), which comes under the Corporate Affairs Ministry.
Meanwhile, HDFC moved the bankruptcy court claiming that a portion of a Jet Airways’ office in Mumbai was mortgaged to it, and so should not be among the assets being considered for sale as part of the debt-resolution process.
Categories: Corporate Governance