Goyal has been issued a Look-Out-Circular (LOC), on basis of which he has been restrained from moving outside India. (Source: Reuters/File)The Delhi High Court Tuesday quashed a plea of former Jet Airways chairman Naresh Goyal, who had challenged the travel ban imposed on him. Justice Suresh Kait said no interim relief can be granted to Goyal at this stage, adding that he may deposit Rs 18,000 crore guarantee if he wants to travel abroad on immediate basis, PTI reported.
The court also sought the Centre’s response on his plea challenging a Look-Out-Circular (LOC) issued against him. The LOC issued against Goyal bars him from moving outside India.
Explained: Look-Out Circular, the notice that (apparently) grounded former Jet boss Naresh Goyal
In his plea, Goyal had said that the LOC has been issued without any basis and that the office memorandums are “bad in law”. Goyal said he came to know of the LOC on May 25 when he and his wife, Anita, were offloaded from a flight to Dubai with an onward connection to London.
According to the Ministry of Corporate Affairs (MCA), the LOC was issued after an inspection by the ministry found large-scale irregularities at Jet Airways, which in April was forced to ground more than three-quarters of its fleet due to acute cash crunch.
Naresh and Anita Goyal had resigned from the board of Jet Airways in March following a debt restructuring plan. He had also resigned as the airline’s chairman.
Jet Airways is undergoing insolvency proceedings, which is at the stage of calling for Resolution Plans by the Insolvency Resolution Professional. Meanwhile, the ministry has also ordered a probe by Serious Fraud Investigation Office (SFIO) into the affairs of Jet Airways.
