Chairman Booked for Alleged Duping; Company Calls it ‘Frivolous’

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SpiceJet chairman and managing director Ajay Singh was booked for allegedly duping a businessman of crores of shares, Gurugram Police said on Monday.

Amit Arora, a consultant in the aviation sector claimed that Singh had delivered a fake depository instruction slip (DIS) of shares worth Rs 10 lakh for services provided to him. He further mentioned that SpiceJet chairman had promised him to transfer 10,00,000 Spicejet shares for his services. Arora claimed Singh had defrauded others also in a similar manner when he took over the airlines from the promoters.

Arora said in his complaint, “Ajay Singh provided a depository instruction slip which, later turned out to be invalid and outdated. Thereafter, I approached him multiple times and requested him to either provide valid depository instruction slip or transfer shares directly. However, on pretext or the other, he refused to transfer me the shares,”

The Gurugram Police registered the case against SpiceJet managing director under sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 415 (deception), 417 (cheating) 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code at the Sushant Lok police station.

“I had no option left but to press charges against Singh,” Arora added.

“An FIR has been registered and we are verifying the facts and action will be taken as per the law,” said inspector Poonam Hooda,  Station House Officer (SHO) of Sushant Lok police station, reported news agency PTI.

Calling the “completely bogus”, SpiceJet spokesperson said,” A frivolous, mischievous and completely bogus complaint has been filed by a liquor dealer Amit Arora with the Gurgaon police with an intention to hurt SpiceJet and Mr Ajay Singh’s image. At no point in time was any service sought from him nor did he ever provide any kind of service to SpiceJet. Neither Mr Singh nor any concerned person from SpiceJet has ever met the complainant for any work nor is there any written agreement between them.”

“We are confident that the police investigation will prove the same and the FIR will be quashed. A defamation suit will be filed against the complainant by SpiceJet and Mr Singh,” the spokesperson further added.

DGCA Issues Show-cause Notice to SpiceJet after 8 Incidents within 18 days

On July 6, Directorate General of Civil Aviation (DGCA) issued a show-cause notice to SpiceJet after it reported eight technical malfunction incidents involving its planes over the last 18 days. SpiceJet has failed to “establish safe, efficient and reliable air services” under the terms of Rule 134 and Schedule XI of the Aircraft Rules, 1937, the notice issued by the regular stated.

“The review (of the incidents) transpires that poor internal safety oversight and inadequate maintenance actions (as most of the incidents were related to either component failure or system-related failure) have resulted in degradation of the safety margins,” it added.

The DGCA has given the airline three weeks to respond to the notice.

(With inputs from PTI)

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