Jet Airways audit shows diversion of funds, fraudulent billing
The Economioc Times July 15, 2019 By Saloni Sukhla A State Bank of India NSE -0.98 % commissioned forensic audit of Jet AirwaysNSE -4.97 % books has revealed misappropriation of funds relating to provision of loans and fraudulent billing for JP Miles, according to two people with direct knowledge of the matter. The report also highlights that invoices raised were not verified leading to excess billing and fuel expenses were raised substantially for Jet even when they remained static for other airlines. “Provision has been made for Rs 3,353-crore loan given to Jet Lite over four years. Board resolution, shareholder approval for making the provision was not made available to the auditors,” the forensic audit conducted by EY says. ET has seen a copy of the report. “Loans were given to Jet Lite despite Jet Airways recording losses in fiscal year 2015 and declining profit over the years,” the report added. The government had recently ordered a p...