NEW DELHI: The Enforcement Directorate (ED) is probing a possible violation of Foreign Direct Investment (FDI) norms by Etihad Airways, when it made a Rs 900 crore investment in Jet Airways in 2014.
The Abu Dhabi-based airline had in 2013 announced purchase of 24 per cent stake in Jet Airways in a $379 million deal, giving the cash-strapped airline a fresh lease of life. This was part of Etihad’s strategy to invest in airlines for aggressive growth in global skies.
The ED began the probe after insiders tipped off that Etihad’s investment in JetPrivilege Private Limited (JPPL) may have been in violation of FDI limit norms.
According to ED officials, the allegations are that Etihad picked up 50.1 per cent stake in JPPL, which was in violation of the existing FDI norms. The current norms allow FDI only up to 49 per cent for the airline.