Government orders probe against Jet Airways over alleged fund mismanagement

The Ministry of Corporate Affairs (MCA) has ordered and Serious Fraud Investigation Office (SFIO) into the alleged fund diversion and large-scale irregularities by now defunct Jet Airways. 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 Serious Fraud Investigation Office (SFIO), which comes under the Corporate Affairs Ministry.

The fresh investigation has been ordered following recommendation given by MCA's Mumbai regional office after inspecting the airline's books.

Faced with acute financial crunch, the once-storied 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 (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20.