Debt-ridden Jet Airways faced more trouble on Wednesday as an Income-Tax Department team conducted search operations at at least three offices of the airline, in Mumbai and New Delhi.

A Jet Airways spokesperson confirmed the development, saying: “Income-Tax officials are conducting a survey at Jet Airways’ office.”

A search operation differs slightly from a tax raid since in the former, the tax officials can impound books of accounts and documents but cannot retain these beyond 10 days without the approval of the concerned Chief Commissioner or Director General of Income Tax.

The issue being probed pertains to suspicious expenses, falsification of book of accounts and siphoning of funds to group entities by the airline.

Sources said the survey may continue for at least a couple of days as tax authorities collect evidence related to financial irregularities.

The airline is already under SEBI scanner for a delay in the announcement of its first quarter results.

Last month even as the airline vowed to cut its debt by ₹2,200 crore, the company auditors maintained that the airline’s future was dependent on raising capital and generating sustainable cash flows. The airline continues to have a negative net worth for the last couple of quarters.

Jet is looking at divesting its frequent flyer programme as well as selling its fleet of aircraft to move to a lease model in order to improve its books but nothing has been finalised yet.

Jet's net loss in the quarter ended June 30th mounted to ₹1,326 crore. The overall debt as of June 30 stood at ₹8,620 crore.

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