Jet promoters defend Sanjiv Kapoor’s Designation

In the ongoing tussle between the Jalan Kalrock Consortium (JKC) and creditors of Jet Airways, the former has written to the head of the Jet Airways management committee (MC) and the Resolution Professional (RP) Ashish Chhawchharia, defending the designation of Sanjiv Kapoor as the CEO-designate of the defunct airline.

The consortium, the successful bidder of the airline, has stated that Sanjiv Kapoor remains the CEO-designate till the ownership of Jet Airways is transferred to the consortium. The letter noted that Kapoor received the necessary security clearance from the Ministry of Civil Aviation in August 2022. JKC has also asked Chhawchharia to remain within the ambit of his powers and refrain from communicating on behalf of Jet Airways until authorized by all members of the committee.

The consortium also noted that if “there exists no resolution which authorizes you to write to Kapoor, your letter under reference shall be considered null and void.” This comes as a response to Chhawchharia’s letter to Kapoor, in which he had asked the CEO-designate to furnish details about his salary and other credentials.

Kapoor had been appointed as the CEO-designate of Jet Airways in August 2022 and had stated that he was ready to join the airline once the ownership of the company was transferred to the consortium. The consortium has claimed that no other approval is required from any statutory authority for Kapoor’s designation. Also, clarified that Kapoor’s salary and other credentials were finalized and approved by the investors, lenders, and the Jet Airways management committee (MC). The consortium has asked Chhawchharia to remain within the ambit of his powers and refrain from taking any decision on behalf of Jet Airways until authorized by all members of the MC.

The consortium has also asked the RP to act on matters which are authorized or otherwise approved by the MC jointly. This is the latest development in the tussle between the JKC and the creditors of Jet Airways.

The consortium has been in talks with the lenders to take over the defunct airline. The consortium has also been in talks with the government to ensure the revival of the airline. However, the matter has been delayed due to the tussle between the lenders and the consortium.

Overall, the consortium has defended the designation of Sanjiv Kapoor as the CEO-designate of Jet Airways and has asked the RP to remain within the ambit of his powers. It remains to be seen how the tussle between the consortium and the creditors of Jet Airways will be resolved.