Jet Airways Insolvency: Creditors question source of Rs 200 crore deposited by Jalan-Kalrock Consortium

The creditors of the grounded carrier Jet Airways on Wednesday raised questions over the source of Rs 200 crore deposited by the Jalan-Kalrock Consortium before the insolvency appellate tribunal NCLAT and said it does not align with the resolution plan.

Additional Solicitor General N Venkataraman, representing lenders including SBI and other banks, told the National Company Law Appellate Tribunal (NCLAT) that there are apprehensions about the source of funds, which deposited money for Jalan-Kalrock Consortium's (JKC).

"The payment is not compliant with the resolution plan as it mandates that the money is to be paid through JKC," ASG submitted before a three-member NCLAT bench headed by Chairperson Justice Ashok Bhushan.

He also alleged that there are apprehensions the money could have been laundered. The lenders sought some time to file a reply over the JKC's compliance affidavit, which was accepted by the appellate tribunal.

Meanwhile, senior advocate Krishnendu Datta, representing the consortium, said only a part of the money came from another source while the majority of the amount was paid by Murari Lal Jalan.

He further alleged, "Lenders are objecting to every move since they do not want to transfer Jet's ownership." NCLAT has directed listing the matter for the next hearing on October 12.

JKC, the winning bidder for the airline, which stopped flying in April 2019 and later underwent an insolvency resolution process, had to pay Rs 350 crore to the lenders by August 31.

Earlier on August 28, NCLAT had extended the time till September 30 for Jalan-Kalrock Consortium for payment of Rs 350 crore to the lenders of the bankrupt Jet Airways.

It had accepted the plea of the consortium to extend the timeline and also for adjustment of Rs 150 crore from the performance bank guarantee (PBG) towards payment of Rs 350 crore.

The consortium has submitted an undertaking before the appellate tribunal, in which it had committed to pay Rs 100 crore by August 31, 2023 and another Rs 100 crore by September 30, 2023.

The consortium on September 29 in a statement had said it had fulfilled its total financial commitment of Rs 350 crore equity as per the court-approved resolution plan.

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