Insta
ED Begins New Probe Against Etihad Airways For Violating FDI Rules In $150-Million Jet Privilege Deal
Etihad Airways (A6-ETO) Boeing 777-3FX (ER) departing Sydney Airport. (Wikimedia Commons)
In the never-ending saga that is the Jet Airways crisis, another turbulence awaits the grounded airline. Enforcement Directorate (ED) has launched a new investigation over possible violation of foreign exchange rules by the Mumbai-based airline while signing a $150-million (over Rs 900 crore) deal with its strategic partner Qatar-based Etihad Airways in 2014, reports Business Standard (BS).
“We have sought information from Jet about the deal and the foreign investment it received for its loyalty business,’’ said an ED official.
It is alleged that Jet did not obtain necessary approvals from the government and the Reserve Bank of India (RBI) to receive foreign funds from its partner airline Etihad in its frequent flyer programme. According to regulations, all foreign investment beyond 49 per cent requires such a nod.
“The company had taken the automatic route, which is allowed in transport services,’’ the official said. But not in loyalty programmes like Jet Privilege which require regulatory approvals.
In 2014, the Qatar-based Etiha had purchased a 50.1 per cent stake in Jet’s frequent flyer company Jet Privilege Private Limited (JPPL). The board of JPPL had allotted the remainder of the shares to Jet Airways Limited.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
