Concerns Over Source Of Funds in Jalan Kalrock Consortium's Jet Airways Revival
Laundering concerns raised as Jalan Kalrock Consortium funds questioned by lenders at NCLAT.
The money infused by the Jalan Kalrock Consortium (JKC) has come from unknown sources, which is not in compliance with the resolution plan the lenders submitted before the National Company Law Appellate Tribunal, New Delhi.
However, refuting the allegations made by lenders’ on the source of funding towards investment made by JKC for reviving Jet Airways, JKC stated that they highly question the lenders' intent to transfer the ownership of the company in favour of JKC after it has executed all its obligations under the court-approved resolution plan by paying the full amount of Rs 350 crore.The next date of hearing has been fixed for Oct. 12.
Last week, the Jalan-Kalrock consortium completed their payment of Rs 350 crore to the lenders of Jet Airways after infusing the remaining Rs 100 crore.
The consortium, JKC, which successfully bid for grounded Jet Airways, had informed the National Company Law Appellate Tribunal that they could inject Rs 100 crore by Aug. 31 and an additional Rs 100 crore by Sept. 30.
They suggested using a performance bank guarantee that the CoC holds to obtain the remaining Rs 150 crore. In response, the bench requested the consortium submit an application explaining the need for an extension to make these payments.
SBI previously stated that the consortium hadn't yet contributed any funds to the airline. The consortium contended that they had an approved revival plan but faced obstacles due to creditors initiating legal proceedings in various forums. They also mentioned that despite holding a valid licence for over a year, it remained unused due to the Committee of Creditors.
In response, SBI clarified that the consortium had not yet injected any funds into the financially troubled airline and had not fulfilled the required conditions for ownership transfer. The creditor argued that the approved resolution plan was not feasible and wouldn't revive the airline.
Jet Airways lacked a renewed air operator's certificate (AOC) since it expired in May, Assistant Solicitor General N. Venkataraman said. An AOC is necessary for an airline to operate an aircraft and must be approved by the Directorate General of Civil Aviation.
