SpiceJet to pay ₹380 crore to Kalanithi Maran; read why
SpiceJet, a low fair airline, has been fined Rs 300 crores by the Delhi High Court to its former promoter, Kalanithi Maran of the Sun Group, and also ordered them to give an affidavit of assets in just four weeks.
The ruling is a knock to the airline, which shook with a four-fold rise in earnings to ₹106.8 crore in the December quarter, and also comes despite a fight with aircraft lessors overpayments. Mint has reviewed a copy of the order.
The High Court judgement on May 29, 2023, stems from a long-running dispute over contractual responsibilities between the Maran family, the current promoter Ajay Singh, and SpiceJet.
Maran sued SpiceJet in 2017 for allegedly causing damage to him and his KAL Airways by failing to grant convertible warrants and preference shares.
SpiceJet ended up settling Maran a principal part of Rs.579.08 crore after a long court fight, but the interest amount was pending. The interest stands at ₹242 crore in October 2020, got to ₹362 crore by February 2023 and finally felt ₹380 crore.
Per the SpiceJet representative, the airline is already in talks with Maran and KAL Airways about a full settlement. “We are confident of reaching an amicable resolution because we have already paid the entire principal amount previously awarded by an arbitral tribunal.”
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