Jalan-Kalrock Invests Additional Rs 100 Crore Into Cash-Strapped Jet Airways

The Jalan-Kalrock consortium (JKC), the new owner of Jet Airways, has successfully infused an additional Rs 100 crore into the airline, thereby fulfilling its commitment to invest a total of Rs 350 crore.

This action comes after the National Company Appellate Tribunal (NCLAT) granted the consortium an extension until 30 September to clear dues worth Rs 350 crore to the lenders of the grounded airline.

“With this infusion, the Jalan-Kalrock consortium has now fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline. The consortium’s strategy to revive the airline remains unaltered," the consortium said in a statement.

Jalan-Kalrock has set a target to revive Jet Airways and have the airline operational by 2024. “Further announcements regarding the launch date of Jet Airways will be made in the coming weeks," it added. The consortium had infused another Rs 100 crore into Jet Airways last week.

Jet Airways, prior to its suspension of operations in April 2019, had an extensive network of over 65 domestic and international destinations, serviced by a fleet of 124 narrow- and wide-body aircraft.

On 5 July, the Committee of Creditors (CoC) of Jet Airways, led by the State Bank of India, had expressed their doubts on the possibility of reviving the airline, and suggested winding it up instead. The primary reason for this was the lack of repayment and infusion of funds into the debt-laden airline.

The lenders had invested approximately Rs 400 crore of public money into the airline, including settling airport dues. The National Company Law Tribunal (NCLT) allowed the transfer of the beleaguered airline to the Jalan-Kalrock consortium on 13 January. However, the lenders to the airline had initially opposed the transfer.

Earlier this month, the founder of Jet Airways, Naresh Goyal, was sent to judicial custody for 14 days in connection with a ₹538 crore bank-fraud case. The Enforcement Directorate (ED) arrested Goyal on 1 September under the Prevention of Money Laundering Act (PMLA) after questioning him for several hours at its office in Mumbai. The allegations against the 78-year-old businessman include siphoning funds from India by creating various trusts and using them to purchase properties abroad.

Jet Airways shares were trading at Rs 55.80 apiece on the Bombay Stock Exchange (BSE), down by 5 percent on 29 September.