SC orders SpiceJet to pay Rs 270 cr to ex-promoter Kalanithi Maran as interest

SpiceJet is one of the leading success stories in India's aviation sector, and has become known for bouncing back from the verge of shutting down. Kalanithi Maran, the owner of Sun TV, had bought into the carrier in 2010 before gradually increasing his stake to 58 per cent, and becoming a promoter. But by 2015, a cash shortage and losses had forced him to sell his entire stake back to its previous owner Ajay Singh.

What's the dispute?

This was followed by a dispute about a share transfer dispute, and now the Supreme Court has ordered SpiceJet to pay Rs 270 crore to Maran, in relation to the same. The verdict came after hearing an appeal by SpiceJet, against a High Court order to pay Rs 243 crore as interest to Maran and KAL Airways. The airline has said that Rs 308 crore of the Rs 578 crore which is in dispute between SpiceJet and Maran, has already been paid.

Spicejet to comply and settle the matter

The remaining balance of Rs 270 crore had been reserved with the firm as cash, and a bank guarantee had been given against it. Now the Supreme Court has ordered SpiceJet to encash the bank guarantee, and pay the remaining money.

Another Rs 75 crore will also be paid by SpiceJet in the next three months to settle the dispute with Maran, once and for all.