NEW DELHI: The Registrar of Companies (RoC), Mumbai, will in about a month’s time tell the government whether promoters of the defunct Jet Airways (India) Ltd need to be investigated for any diversion of funds from the company.
The government has decided to speed up inspection of the books of Jet Airways that was ordered last August shortly after the company deferred its first quarter FY19 results. Although major shareholders of companies cannot be held liable for a business failure, any diversion of fund from the company by promoters can deprive them of their limited liability. The RoC report will tell the government if an investigation into promoters’ conduct is needed or not. RoC’s inspection of a company’s books is similar to a preliminary fact finding exercise which will lay the ground for further action. “It could be a detailed investigation by the RoC itself or by any other detective agency,” a person familiar with the development said on the condition of anonymity.
