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NCLT grants time till March 2 to DGCA for response on Jet Airways’ slot

On Thursday, the NCLT has granted aviation regulator DGCA time till March 2 to respond on Jet Airways’slot issue.

The National Company Law Tribunal is hearing the resolution plan of the grounded carrier Jet Airways currently.

In January, the tribunal issued a notice to the Directorate General of Civil Aviation and the Ministry of Civil Aviation.

The purpose was however to clear their stance on airline’s slots.

Moreover, the ministry has temporarily allowed most of the slots of Jet Airways to other domestic airlines.

This took place after the ministry ceased all operations of the airline back in April 2019.

Earlier this week, the NCLT had rejected applications that various parties filed seeking a copy of the resolution plan.

Further, winning bidder Kalrock-Jalan had submitted the resolution plan for grounded Jet Airways.

The plan will be successful only if the slots are allotted back to the airline as per counsel.

Currently, the airline owes more than Rs 8,000 crore to banks, with public sector lenders having significant exposure.

Consortium of the UK’s Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan submitted the resolution plan in October 2020.

The committee of creditors of Jet Airways had approved the resolution plan under the insolvency resolution process.

Also, the approval of this plan was post the conclusion of the e-voting on the proposal.

The grounded airline’s resolution professional Ashish Chhawchharia said “slots are a vital part of the plan.” He further added, “It is important that DGCA and MoCA submit their stance on the same.”

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