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Debt-laden Jet Airways seem to be lurching from one crisis to another.
In the latest turbulence, State Bank of India has asked EY to carry out a forensic audit of the airline’s financials for the fiscal years 2014 to 2018. SBI is the lead banker to the airline’s loans of over ₹8,000 crore.
According to sources close to the development, the probe was initiated after a complaint was made to the bank in August this year. “Since the allegations are financial in nature, EY has been appointed to audit it and a copy of the report will be sent to the complainant,” the source said.
While SBI and EY declined to comment, the spokesperson for Jet Airways was not available.
Jet Airways has a loan account with SBI whose exposure to the airline is said to be close to ₹2,000 crore. Jet had reported a net loss of ₹1,261 crore for the second quarter of FY19.
Looking for funds
According to sources, a fortnight ago, the cash-strapped airline had requested a $350-million soft loan from its investment partner Etihad Airways, which owns a 24 per cent stake in the full-service Indian carrier.
It was also reported that Jet’s founder Naresh Goyal had approached Etihad for increasing its stake to 49 per cent.
Even as the talks were going on, Abu Dhabi-based businessman and the Managing Director of Lulu Group International, Yusuff Ali MA, who was also said to have evinced an interest in the troubled airline, walked away from a likely deal.
In November, there were reports that Tata Sons was likely to pick up a stake in Jet Airways. The Tatas already own stakes in full-service carrier Vistara (51 per cent) and budget player AirAsia India (49 per cent).
However, after a board meeting, the company clarified that the discussions with Jet Airways were “preliminary” and that “no proposal” had been made.
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