The Jet-Etihad deal that has been plagued by far too many impediments and has hit yet another obstacle today. The Home Ministry today re-opened the file on Tail Winds which was earlier Jet Airways’ largest shareholder.
The ministry has circulated an internal file raising fresh queries on Tail Winds even though it has nearly exited from the airline which was a pre-requisite for the deal to go through. Sources say a copy of the note has been sent to the Department of External Affairs. The move comes on the backdrop of MHA’s nod for security clearance.
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The MHA’s internal security wing has in total raised about seven queries seeking comprehensive information on the shareholding pattern and their source of funds or initial capital of Tail Winds; information on their balance sheets; their tax returns and the dividends that the company has paid till date right from the time it was first incorporated.
Particularly, many of the concerns or the queries Ministry of Home Affairs (MHA) has raised sort of mirrors the concerns that the National Democratic Alliance (NDA) regime had raised many years ago.
Through these queries, the focus is back on Tail Winds. Back in 2001 Arun Shourie had also raised concerns about Tail Winds on the floor of the parliament as to who really owns it- an allegation many would believe have been responded to by the airlines on many occasions. Tail Winds was registered as an overseas corporate body (OCB) and with its registration in the tax haven of Isle of Man.
What is puzzling is why this issue is being brought up now especially when Tail Winds has practically exited from Jet Airways through equity shareholding restructuring that they brought about over the last 12 months, whereby which they have sort of offloaded the entire shareholding to Chairman Naresh Goyal. In fact in November recently the company also offloaded additional 7 percent stake too.
These concerns, according to aviation sector analysts, are going to do little to the Jet-Etihad deal because similar concerns have been raised in the past. They feel the only way there could be some problem for the deal is if the Supreme Court intervenes, something which so far they have not done.
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