Winners of Jet Air bid seek SC approval for revised payment plan
AVIATION & AIRPORTS

Winners of Jet Air bid seek SC approval for revised payment plan

The Jalan-Kalrock Consortium (JKC), the entity that successfully emerged as the resolution applicant for Jet Airways, has appealed to the Supreme Court to permit the substitution of a Rs 1.5 billion performance bank guarantee with a new financial instrument. The consortium conveyed to the court in its petition that upon the release of the bank guarantee by the lenders, led by the State Bank of India, it would deposit Rs 1.5 billion within seven days.

JKC approached the apex court subsequent to its directive on January 17, instructing the winning bidders to pay Rs 1.5 billion by January 31, under the threat of "serious consequences."

Sources indicated that the lenders have rejected the offer, expressing frustration with the delaying tactics employed by the consortium.

A person familiar with the deliberations stated, "From the lenders' perspective, we are merely observers in this case now, and we will adhere to what the Supreme Court decides. The facts are evident to everyone, and there is nothing the banks can do."

The consortium, consisting of Murari Lal Jalan based in Dubai and the UK's Kalrock Capital, along with the committee of creditors led by the State Bank, comprising 11 banks, has enlisted lawyers to convince the court to accept the new plan, citing funding from Dubai.

Due to both promoters being non-resident Indians (NRIs), obtaining permission from the Reserve Bank of India (RBI) takes time, governed by the Foreign Exchange Management Act. The process of securing a fresh guarantee was delayed by bank holidays. A lawyer stated, "This payment plan will enable us to comply with the Supreme Court's directives, ensuring that the consortium already possesses Rs 1.5 billion in India, which can be immediately deposited in the share application of Jet Airways."

Despite an extended legal battle, the Jalan-Kalrock consortium remains committed to reviving the airline, as explained by the lawyer. He highlighted the lenders' failure to fulfill the conditions outlined in the resolution despite multiple reminders. Seeking regulatory approval for director appointments from the registrar of companies has been a time-consuming process, hindered by delays.

The consortium, victorious in the bid to operate the airline through a bankruptcy process led by the State Bank of India, has faced challenges in taking ownership of the airline. The consortium has incurred expenses exceeding ?300 crores for hiring executives to conduct probing flights, an essential element in maintaining the air operator's certificate's validity.

The Jalan-Kalrock Consortium (JKC), the entity that successfully emerged as the resolution applicant for Jet Airways, has appealed to the Supreme Court to permit the substitution of a Rs 1.5 billion performance bank guarantee with a new financial instrument. The consortium conveyed to the court in its petition that upon the release of the bank guarantee by the lenders, led by the State Bank of India, it would deposit Rs 1.5 billion within seven days. JKC approached the apex court subsequent to its directive on January 17, instructing the winning bidders to pay Rs 1.5 billion by January 31, under the threat of serious consequences. Sources indicated that the lenders have rejected the offer, expressing frustration with the delaying tactics employed by the consortium. A person familiar with the deliberations stated, From the lenders' perspective, we are merely observers in this case now, and we will adhere to what the Supreme Court decides. The facts are evident to everyone, and there is nothing the banks can do. The consortium, consisting of Murari Lal Jalan based in Dubai and the UK's Kalrock Capital, along with the committee of creditors led by the State Bank, comprising 11 banks, has enlisted lawyers to convince the court to accept the new plan, citing funding from Dubai. Due to both promoters being non-resident Indians (NRIs), obtaining permission from the Reserve Bank of India (RBI) takes time, governed by the Foreign Exchange Management Act. The process of securing a fresh guarantee was delayed by bank holidays. A lawyer stated, This payment plan will enable us to comply with the Supreme Court's directives, ensuring that the consortium already possesses Rs 1.5 billion in India, which can be immediately deposited in the share application of Jet Airways. Despite an extended legal battle, the Jalan-Kalrock consortium remains committed to reviving the airline, as explained by the lawyer. He highlighted the lenders' failure to fulfill the conditions outlined in the resolution despite multiple reminders. Seeking regulatory approval for director appointments from the registrar of companies has been a time-consuming process, hindered by delays. The consortium, victorious in the bid to operate the airline through a bankruptcy process led by the State Bank of India, has faced challenges in taking ownership of the airline. The consortium has incurred expenses exceeding ?300 crores for hiring executives to conduct probing flights, an essential element in maintaining the air operator's certificate's validity.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?