Monday, November 11, 2019

Jet Airways crisis: Naresh Goyal, debt-laden airline come under SFIO investigation for fund diversion

Fresh troubles have emerged for debt-laden Jet Airways and its founder Naresh Goyal. The Serious Fraud Investigation Office (SFIO) reportedly initiated an investigation into fund diversion allegedly by Goyal though general sales agents (GSA) model of Jet Airways, said a report in Business Standard.

Goyal's GSA Jet Airways Travels reportedly was a front agency of Jet Airways in several companies and he allegedly used these firms to siphon off funds, the report said quoting investigative agencies.

The money has been shown as outgoing payments to these sales agents but in many case, it was just a front for the company itself. There are many irregularities under investigation," a person in the know of the development was quoted as saying in the report.
In July this year, the government had ordered an investigation into the alleged mismanagement of funds at Jet Airways, which halted operations in April this year after running out of cash.
The Ministry of Corporate Affairs (MCA) had ordered SFIO to carry out the investigation, Reuters had reported citing a government order.
The order refers to alleged siphoning off of funds and unspecified financial irregularities at Jet Airways, which was once India’s largest private airline, but did not include details on the allegations or name any individuals.
11/11/19 First Post

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