Swamy dashes off one more letter to PM asking for probe into Spice Jet ownership
news Monday, May 04, 2015 - 05:30
The BJP leader Subramanian Swamy has written another letter to the Prime Minister Narendra Modi asking for the constitution of a committee to look into the ownership of Spice Jet airlines. The Prime Minister has issued a letter acknowledging its receipt. In a letter written to the PM on April 28, Swamy says that there is an urgent requirement for an enquiry to be conducted by the PM's office with inputs from the Enforcement Directorate, Intelligence Bureau and RAW on alleged financial irregularities in Spice Jet. Swamy asks why the Civil Aviation Ministry remained mute when Spice Jet owner Ajai Singh inducted Rs 1300 crore into the running of the airline. "Did the ministry under-write this loan by any of the financial institutions. If so, why?" He then goes on to question why and how was Goldman Sachs asked to evaluate the net worth of Spice Jet airlines when there are many Indian agencies with no foreign connections who can do the same. He further questions the basis on which Goldman Sachs declared that Spice Jet share prices were near-zero. Swamy then argues that the valuation of a PLC should have been done publicly. The BJP leader in his letter to the PM has questioned on what authority did SEBI suo-moto inform the ministry that the sale of shares need not first be offered to existing shareholders and Ajai Singh could acquire 58% or more at an undisclosed price. Swamy's letter is a follow-up to a letter he had written to the PM on April 20. Ajai Singh, a co-founder of the airline had bought a 58.46 percent stake from Kalanithi Maran and Kal Airways for about Rs 1,300 crore as part of a revival plan. Singh reportedly holds 60.31 percent stake in SpiceJet. Here is the PM's response to the letter.