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Jet Airways India says it's not aware of any inquiry by govt

New Delhi

JET AIRWAYS India Ltd, the carrier that deferred earnings this month pending endorsement of its books by auditors, said it is unaware of any probe initiated by government authorities after a report said the company is under scrutiny for alleged embezzlement of funds.

The Registrar of Companies, which is under the Ministry of Corporate Affairs, has started an initial inquiry into potential wrongdoings such as diversion of cash, and will also look at the role of auditors, people familiar with the matter said, asking not to be identified citing government rules.

The examination is only preliminary, and it may turn into a formal probe upon any evidence, one of them said.

Jet Airways "has not received any communication from the Ministry of Corporate Affairs in this regard", it said in a statement to the stock exchange on Tuesday.

Shares of the carrier fell as much as 3.9 per cent in Mumbai on Tuesday after first reported the development. The stock has plunged 65 per cent this year, compared with a 9 per cent drop for rival IndiGo, the low-cost airline operated by InterGlobe Aviation Ltd, and a 12 per cent gain for the benchmark Sensex index.

The carrier, part-owned by Etihad Airways PJSC, deferred its earnings originally scheduled for Aug 9 by more than two weeks, saying the company's management and auditors needed more time to finalise its accounts. It will now announce its results on Aug 27. BLOOMBERG

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