Jet Airways Shares Slump as Much as 4% After Reports of Govt Probe Over Embezzlement

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    Shares of Jet Airways today fell nearly 4 percent in morning trade on bourses after news reports surfaced that the Ministry of Corporate Affairs has opened a preliminary inquiry into the carrier. As per the media reports, the Mumbai Registrar of Companies (RoC) will inspect Jet's books of accounts for alleged embezzlement of funds.

    Jet Airways Shares Slump as Much as 4% After Reports of Preliminary Govt Probe

    It said that the ministry will start an initial inquiry into any wrongdoings regarding diversion of cash, and this examination would only be on preliminary, turning formal only after finding any convincing evidence.

    In a regulatory filing, however, the company denied such claims saying it "has not received any communication from the Ministry of Corporate Affairs in this regard". The shares of the company opened on a weak note at Rs 297.80 on BSE (Bombay Stock Exchange), then fell to a low of Rs 289.95, down 3.73 percent over its previous closing price.

    Similar movement was seen on NSE (National Stock Exchange) as well, where the stock opened at Rs 297.40, then fell to a low of Rs 289.65, down 3.89 percent from its last close. Jet Airways is facing financial stress and on August 9 the company held off from announcing the unaudited financial results for the June quarter. Both BSE and NSE have sought an explanation from the company on this. Meanwhile, a meeting of the board of directors is scheduled to be held on August 27 to consider and approve the unaudited financial results for the first quarter ended June 30.

    Inputs from PTI

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