The Hindu : Clean chit to Jet on ownership issue

Online edition of India's National Newspaper
Wednesday, Jul 17, 2002

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Business

Clean chit to Jet on ownership issue

NEW DELHI JULY 16. Jet Airways, which has been accused of sheltering underworld funds, has been cleared in a probe by the Department of Company Affairs.

The DCA, which took up the probe in the context of intelligence reports that tainted money had been channelised into Jet, concluded that its owner Naresh Goyal holds the 100 per cent equity in the carrier through Isle of Mann based Tail Winds Ltd. This followed acquisition of 40 per cent equity from Kuwait Airways and Gulf Air.

The DCA looked into accounts of Jet under Sec.209 A and concluded that Mr. Goyal had funded purchase of 40 per cent foreign stake through a $14.4 million loan from Abudhabi Commercial Bank by pledging Jet shares.

When contacted, sources in the DCA said it would soon send its report on the ownership pattern to the Home Ministry with the conclusions that "Naresh Goyal holds 100 per cent equity in Jet Airways through TWL, being the sole beneficial owner of Jet Airways.'' The inspection of accounts and other books by the DCA followed a question in Parliament last year seeking ownership details of Jet and TWL, besides asking if the airlines had violated provisions of the Companies Act. — PTI

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