After an IT Department inspection conducted at Mumbai and Delhi offices of Naresh Goyal promoted full service airline Jet Airways on Wednesday, sources indicate that Jet Airways management was prevented from leaving office till late Wednesday night by the armed personnel stationed outside Jet Airways’ offices in Mumbai. I am ready to leave but cant get out, the armed tax officials wont let me go,” a Jet management official reportedly told a source late Wednesday night adding that armed guards at Jet Airways were preventing management from leaving the office.
Jet Airways did not respond immediately to a query by FE sent late last night. Earlier on Wednesday the Income Tax Department officials had inspected the accounts and finance department at the financially stressed airline for possible siphoning of and misappropriation of funds or falsification of accounts by the airline to various entities that are involved in businesses of the Indian entity promoted by Naresh Goyal, sources said.
In a statement issued on Wednesday the airline had said, “ Income Tax officials are conducting a survey at Jet Airways’ office.”
According to sources, under scrutiny is Rs 5,000 crore, an accumulated amount of money, till the year 2013, that is attributable towards payment to certain GSAs or Global Sales Agents involved in transacting the airline’s business sales globally. “This has been largely disclosed,” said a source.
Jet Airways that is going through one of its most challenging financial phases reported a loss of Rs 1,323 crore for the first quarter of this financial year. It has deferred salaries of a large percentage of its staff for the months of August and September and has conveyed that these will be paid in two installments for each month.
Jet has gross debt of Rs 8,424 crore with accumulated losses of Rs 10,772 crore. It is currently looking at ways to get in liquidity into the company by demonetizing its flying mile programme and other mechanisms like the sale and lease back incentives that it can work out on its aircraft assets. It has a turnaround plan underway that was announced in August that targets savings of Rs 2,000 crore over the next couple of years through cost rationalization and revenue generating mechanisms.