Govt orders inspection of Jet Airways’ books

Source: The Hitavada      Date: 01 Sep 2018 11:41:15




THE Corporate Affairs Ministry has ordered an inspection of “books and papers” of Jet Airways, Union Minister P P Chaudhary said on Friday.The Registrar of Companies (RoC), which comes under the Ministry, had sought an explanation from the crisis-hit full-service carrier following receipt of a complaint.

To a query about alleged corporate governance lapses at Jet Airways and the issues being looked at by the RoC, Minister of State for Corporate Affairs said the Ministry had ordered an inspection of the airline’s books of accounts.

“The Ministry has ordered an inspection of books and papers under Section 206(5) of Jet Airways on August 30, 2018,” Chaudhary told PTI in an interview.However, he did not elaborate on the specific issues. Section 206 of the Companies Act, 2013, provides power to call for information, inspect books and conduct inquiries.

Depending on the circumstances, the Central Government can carry out “direct inspection of books and papers of a company by an inspector appointed by it for the purpose” under Section 206(5).There was no immediate response from a Jet Airways spokesperson to a query about the Government ordering an inspection of the airline's books.

Jet Airways, which has been flying for over 25 years, posted a net loss of Rs 1,323 crore for the latest June quarter on August 27. The carrier is also under the regulatory lens for deferring the results, which were initially scheduled to be announced on August 9.