Jet Airways, once a prominent player in the Indian aviation industry, is still grappling with challenges in its bid for revival. The Jalan-Kalrock Consortium (JKC), the successful bidder for the airline, faces hurdles raised by lenders led by the State Bank of India.
During a hearing at the National Company Law Appellate Tribunal (NCLAT), lenders pressed JKC to present the Air Operator Certificate (AOC), a crucial requirement for resuming flight operations. This certificate is crucial for the airline to restart, and it’s a condition set by the lenders.
The ownership transfer to JKC has faced opposition from the airline’s Committee of Creditors (CoC), leading to legal proceedings. Lenders have previously voiced concerns about the consortium’s funding sources, drawing attention to alleged money laundering activities, particularly in connection with investor Florian Fritsch, who is currently under investigation for fraud by European entities.
The court has postponed the hearing to December 11, stressing a zero-tolerance policy for further delays and prioritizing the case on that date. In earlier hearings, the Directorate General of Civil Aviation (DGCA) conditionally extended Jet Airways’ AOC until September 3, limited to facilitating the Corporate Insolvency Resolution Process (CIRP). JKC contends that the flying permit remains valid until they initiate flight operations.
General N Venkataraman highlighted the case’s complexities, citing JKC’s legal maneuvers, including a request for the return of a ₹200 crore deposit and simultaneous appeals for an urgent hearing at the Supreme Court. JKC claims that the funds are intended for equity issuance in the airline, an action pending execution by the lenders.
Jet Airways ceased operations in April 2019 due to financial difficulties, and the ownership transfer has been mired in disputes between lenders and the consortium. On June 22, 2021, the National Company Law Tribunal (NCLT) approved the resolution plan for Jet Airways.
