Jet Airways, Naresh Goyal come under SFIO probe. Aviva Life Insurance to be admitted into IBC.
Under the Scanner: Grounded Jet Airways and its Founder Naresh Goyal have come under Serious Fraud Investigation Office (SFIO) probe for allegedly siphoning off money.
Zooming In: The SFIO is looking into the general sales agents (GSAs) model of Jet Airways. The agency has found that the company’s vast network of sales agents across the globe was not independent of Jet Airways and in fact, several of these entities were linked to its founder, Naresh Goyal.
When venturing into a new or developing market or cutting costs in an existing market, airlines often choose general sales agents as their representatives to offer services and products without investing in their offices and teams. Goyal’s GSA Jet Air Travels also acted on behalf of Jet Airways in multiple countries. But investigative agencies have said these agencies were used by Goyal to siphon off the company’s money. BS
Insurance in Danger: Aviva Life Insurance has become the first financial company to be admitted into Insolvency and Bankruptcy Code (IBC).
The development comes after the National Company Law Tribunal (NCLT) upheld a landlord’s claim accusing the insurer of failing to meet its payment obligations and ordered the commencement of the company’s insolvency process. ET Insure
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