Jet Airways revival flies deeper into rough air as panel bars Sanjiv Kapoor as CEO

A consortium of London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan emerged as successful bidders in the Jet Airways insolvency resolution process. (Representative Image)

The revival plan of Jet Airways which was granted the Air Operator Certificate to start commercial flight operation in May has been hitting new roadblocks every other day.

Amidst the uncertainty sources have told CNBC-TV18 that Jet Airways' erstwhile Resolution Professional and Head of Monitoring Committee Ashish Chhawchharia has now sent a notice to Sanjiv Kapoor objecting to his designation as CEO of Jet Airways.

In the notice the Monitoring Committee has asked Kapoor to not make any statements on behalf of Jet Airways, added the sources as his statements can be misleading and can cause confusion in the minds of stakeholders.

The sources added further that the Monitoring Committee is still supervising the implementation of the Resolution plan and the airline hasn't been taken over by the Jalan-Kalrock Consortium yet.

Jet Airways shut down in April 2019 over piling losses and a debt of about Rs 8,000 crore. A consortium of London-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan emerged as successful bidders in the Jet Airways insolvency resolution process.

According to the sources the Monitoring Committee has notified that Sanjiv Kapoor's tenure as CEO shall commence only after the Resolution plan has achieved effective date and after the Monitoring Committee has approved his appointment. The development comes amid an ongoing deadlock between the Jalan-Kalrock consortium and Jet Airways' lenders over payment and transfer of the airline's ownership.

Head of Monitoring Committee Ashish Chhawchharia declined to comment on the notice. CNBC-TV18 is awaiting response from Sanjiv Kapoor and Jalan-Kalrock consortium.