Jalan-Kalrock needs to provide for Jet staff’s PF dues: Lenders

Jet Airways’ employees’ pending provident fund dues are paid, and lenders have asked the grounded airline, the Jalan-Kalrock consortium, to revise their resolution plan. The recent order from the National Company Law Tribunal (NCLT) has allowed the transfer of ownership of Jet Airways to the consortium. But the lenders have challenged it citing non-completion of conditions mentioned in the plan. It is estimated that the unpaid provident fund and gratuity dues to employees amount to about ₹250 crores.

The consortium has proposed a total cash infusion of ₹1,375 crores, including ₹475 crores for payment to stakeholders. Out of this, ₹380 crore was to come to financial creditors to settle their admitted claims of over ₹7,801 crores for a 5% recovery. But since the new liabilities of ₹250 crores on employee dues have been added, the lenders have asked Jalan-Kalrock to rejig their plan to include that amount.

The consortium has promised to clear the dues of Jet Airways’ employees as part of their resolution plan. However, the lenders want to ensure that the dues are paid before the handover process is completed. The dues include salary and other dues that the employees are yet to receive from the airline.

The consortium has not yet commented on how it plans to pay the dues, but the lenders are hopeful that the process will be completed soon. The resolution process of the airline has been delayed for more than a year, and the payment of employee dues is a crucial step in the handover process.

The consortium, which comprises Murari Lal Jalan and London-based Kalrock Capital, has promised to revive the airline by investing ₹25,000 crores over the next five years. However, the payment of employee dues will be a key factor in the success of the resolution plan.