Jet Airways stock hits 5% lower circuit after consortium proposes to pay Rs52cr to settle employees claims

The reports have stated that employees claim that the airline owes them between Rs3 lakh to 85 lakh per personnel. However, each employee is being offered only Rs23,000.

Jul 12, 2021 03:07 IST India Infoline News Service

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Private carrier, Jet Airways who has finally received approval on its resolution plan, froze at the lower circuit on Monday's trading session after the consortium as per reports has decided to pay Rs52cr as settlement claims in employees.

At around 3.19 PM, Jet Airways at the lower price band of Rs88.40 per piece down by 5%.

As per reports, it is known that the admitted claims of employees are somewhere around Rs1,265cr, while the Karlock-Jalan consortium is said to pay only Rs52cr as settling claims.

The reports have stated that employees claim that the airline owes them between Rs3 lakh to 85 lakh per personnel. However, each employee is being offered only Rs23,000.

Further, under the resolution plan, the consortium plans to pay Rs 11,000 cash, Rs5,100 cash as medical expense reimbursement for employees parents, while Rs5,100 cash as school fee reimbursement for children of the staff. Also, Rs1,100 to be paid as stationary for children of the staff and there is a one-time mobile phone recharge of Rs 500.

Jet Airways employees are reportedly unhappy with this settlement. 

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