Contention over whether new owners of Jet Airways have to pay Rs 250 crore to employee pension fund

7 Dec 2022 , 07:21 AM

A court-approved resolution plan is being resisted by lenders to the bankrupt Jet Airways India Ltd., further postponing the former No. 1 private airline’s return to the skies.

The main point of contention is whether the new Jet Airways owners are required to contribute more money to the pension funds of former employees.

The banks, headed by the State Bank of India, want the new owners of Jet Airways, businessmen Murari Lal Jalan of Dubai and Florian Fritsch of London’s Kalrock Capital Management Ltd., to contribute an additional Rs 250 crore ($30.1 million) to the retirement fund.