Mumbai: In more trouble for Jet Airways, the Serious Fraud Investigation Office (SFIO) has been ordered by the Ministry of Corporate Affairs (MCA) to conduct a probe into the crisis-hit airline and its subsidiaries on suspicion that the promoters siphoned off money, according to media reports. “The government has found enough evidence of siphoning off of funds and thus it warrants SFIO probe. The report of the Western Regional Director was submitted earlier this week and only after a detailed examination of the report, such a decision has been taken by the ministry,” sources told CNBC-TV18.
MCA has ordered SFIO to look at the case at the earliest, they added. Adding to woes, Jet Airways’ Whole Time Director Gaurang Shetty has resigned from the company. Shetty is the third director to quit Jet Airways in a month. Earlier independent director Rajshree Pathy and former aviation secretary and chief election commissioner Nasim Zaidi, who was a non-executive director, also quit last month. In another news, AdiGro Aviation, part of the London-based Adi Partners on Thursday submitted a binding bid to buy a stake in the grounded Jet Airways. The last date for submitting the bids is May 10.
The bidding process’ outcome is expected to be known by May 10. Meanwhile, traders’ body CAIT Thursday wrote to Civil Aviation Minister Suresh Prabhu seeking the introduction of a price control mechanism to cap the upper limit of fares following post Jet shutdown.
