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
Real Estate

Indian real estate attracts USD 1.4 bn institutional investments in Q1 2026: Vestian

Institutional investments in India’s real estate sector touched USD 1.4 billion in Q1 2026, marking the highest first-quarter inflow since 2022, according to Vestian. While investments fell 62 per cent quarter-on-quarter due to an exceptionally high base in the previous quarter, they rose 74 per cent compared to the same period last year, reflecting sustained investor confidence despite rising geopolitical and macroeconomic challenges.Commercial real estate remained the key driver of investment activity during the quarter, accounting for 80 per cent of total inflows, sharply higher than 38 p..

Next Story
Infrastructure Transport

VECV crosses 1 lakh annual vehicle sales milestone in FY26

VE Commercial Vehicles (VECV), a joint venture between Volvo Group and Eicher Motors, has surpassed the 1 lakh annual sales mark in FY 2025–26, recording its highest-ever commercial vehicle sales performance. The company said it sold more than 100,000 vehicles during the year, marking a major milestone aligned with the original vision of the Volvo–Eicher joint venture.The strong performance was supported by demand across categories. Light and Medium Duty (LMD) trucks contributed 47,789 units, accounting for 46.1 per cent of total sales. Heavy Duty (HD) trucks recorded 26,867 units (25.9 pe..

Next Story
Technology

Rodic Digital & Advisory partners SatSure to deploy EO intelligence in public sector

Rodic Digital & Advisory (RDA), the strategic advisory and digital transformation arm of Rodic Consultants, has signed a strategic cooperation Memorandum of Understanding (MoU) with SatSure to jointly pursue opportunities in India’s public sector. The collaboration aims to integrate high-resolution Earth Observation (EO) data and geospatial AI into government workflows to strengthen monitoring, compliance, and operational decision-making across key sectors.The partnership combines SatSure’s Earth intelligence capabilities with RDA’s expertise in government digital transformation and ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement