MHA conducting background check of new owner of SpiceJet

New Delhi, PTI | Updated : 11 March 2015, 06:00 PM

Security agencies are conducting a background checking of new owner of SpiceJet, Ajay Singh, after he infused a fund of Rs 500 crore in the beleaguered air carrier and announced plans to invest Rs 1,500 crore.

The Home Ministry ordered a background check of Singh as part of the standard protocol of verifying antecedents of a potential investor, sources of funds and whether the promoter has any links with any unlawful activities or criminal gangs.

The request for background check of the new owner of the SpiceJet came from the Civil Aviation Ministry.

“Background checking is a standard drill which we have to carry on if any investor infuses funds into any Indian company. If nothing adverse comes, we will give the security clearance,” a Home Ministry official said.

Background check of the new owner of the SpiceJet is expected to be completed by security agencies within a fortnight.

After facing financial trouble, the budget carrier had settled its dues with the tax authorities, oil companies and paid rentals dues to some of its lessors.

SpiceJet paid these dues after Singh infused a Rs 500 crore in the carrier late last month as part of his overall Rs 1,500-crore investment plan to revive the airline.

Besides other dues, the airline recently cleared salaries due of its employees.

SpiceJet has a fleet of 17 leased Boeing 737-800s and owns 15 Bombardier Q-400s.

First Published: Wednesday, March 11, 2015 05:58 PM

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