Jet Airways' Lenders Air Out Concerns Over Investors' Fraud Probe

The Supreme Court will hear Jet Airways' lenders' pleas on 12 October now
Jet Airways
Jet Airways

Lenders of the bankrupt airline Jet Airways have requested that the Jalan-Karlock Consortium confirm through an affidavit whether their investor, Florian Fritsch, is under investigation for fraud in Europe.

The request came up during a court hearing on Monday. The lenders' lawyer, Harish Salve, expressed concern about the funds being held up and accused Fritsch of using delay tactics by depositing the consortium's investment in the airline in Rs 100 crore instalments, according to Mint.

In response, the consortium's lawyer, Mukul Rohatgi, argued that the lenders have been demanding money at every stage, despite the consortium already depositing Rs 350 crore.

The lenders sought to consolidate all outstanding matters related to the case in the Supreme Court for a joint hearing, while the consortium requested a separate hearing for this specific petition.

The hearing has been deferred to 12 October at the request of both the parties involved.

Authorities in Liechtenstein are investigating Jet Airways investor Florian Fritsch for suspected fraud and money laundering. Media reports state that luxury cars and watches were seized during the investigation. The Supreme Court of Liechtenstein disclosed this information.

During a National Company Law Appellate Tribunal (NCLAT) hearing on October 4th, lenders claimed that the money deposited by the consortium could have been laundered.

They filed an application with the Mumbai branch of the National Company Law Tribunal (NCLT) to investigate the source of the money.

The lenders claimed that the consortium did not disclose the origin of the funds, which they believe came from 'unknown sources'. They argued that the money used to resolve the situation should be legitimate.

On September 29th, the consortium stated that it had fulfilled its commitment to provide ₹350 crore to Jet Airways. It remains determined to revive the airline and have it operational by 2024.

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