IT Dept examines Jet Airways books

The Income Tax Department on Wednesday conducted inspection of account books of Jet Airways at four premises in the national capital and Mumbai.

Officials said the IT Department is probing the airline for siphoning of funds, suspicious transactions and falsifying accounts besides discrepancies in expenses mentioned in account books of group entities.

The IT Department may continue its inspection for a couple of more days, they said. An airline spokesperson said the IT officials are conducting a survey at Jet Airways' office.

The survey operations under Section 133A of Income Tax Act were conducted in Andheri and Nariman Point offices in Mumbai.

The IT action comes as further trouble for the financially-strapped airline, which is already under the scanner of SEBI and the Ministry of Corporate Affairs. In August, the Ministry of Corporate Affairs ordered an inspection of "books and papers" of the airline.

The Jet Airways has been in the limelight for the past over a one month after it claimed of facing a cash crunch. It had to defer its quarterly results as its auditors did not clear the report citing differences. The auditor did not modify its opinion and reiterated that the airline’s future was dependent on raising capital and generating sustainable cash flows.

The airline had reportedly approached a consortium of banks seeking Rs 5,000 crore even as a US-based firm was exploring possibilities of buying stakes in its loyalty arm. The airline had plans to cut the salary by 25% of pilots and other senior staff while the top management has already done it.

Jet Airways reported a net loss of Rs 1,323 crore for the June quarter on August 27.