I-T CONDUCTS SURVEY OF JET AIRWAYS

The income tax department on Wednesday began inspecting the books of crisis-hit Jet Airways for alleged falsification of accounts and suspicious transactions, sources said. The carrier, which is grappling with financial woes, is already under the scanner of market regulator Sebi and the corporate affairs ministry. Sources added the department was conducting the operation on four premises of the airline.

The income-tax department has launched a two-day survey operation on the business premises of the Naresh Goyal-controlled Jet Airways in connection with alleged financial irregularities and suspicious transactions, said an I-T source privy to the development.

According to the source, the tax men are examining whether there is any falsification of the account books, siphoning of funds, and issue of suspicious bogus expenses booked to group entities.

“Documents have been impounded and the books have been sent for verification,” said the source cited above. The survey operation, being conducted by 50 tax officials, is taking place under Section 133A of the I-T Act at the airline’s four premises, including Andheri and Nariman Point, in Mumbai and Connaught Place in Delhi.

Jet stock fell 3.7 per cent on the BSE to close at ~244.25 on Wednesday. During the day, it lost 5.71 per cent to ~239.05— its 52-week low. At NSE, shares dropped 4.21 per cent to close at ~243.15. The company’s market valuation also fell by ~1.05 billion to ~27.74 billion on BSE.

Sources said the I-T department is assessing whether the financial transaction would attract tax liability on the parties concerned. Accordingly, the evidence is being collected. Further, some of the top airline executives were being questioned during the first day of the survey operation, they added. Confirming the development, a Jet spokesperson said I-T officials were conducting a survey at their office.

Meanwhile, the tax department is also examining the airline’s deal with Godrej Buildcon, where Jet is said to have received ~17.25 billion as monetary consideration.

Jet has been in the spotlight since August 9, after it had deferred its quarterly results amid differences with its auditors, leading to queries by stock exchanges and the market regulator. Jet had said last month that it would seek capital infusion and sell stake in its loyalty programme, after reporting a net loss of ~13.26 billion in the April-June quarter of 2018-19.