Cheating case filed against SpiceJet CMD Ajay Singh in Gurugram
There seems to be no end to the troubles of SpiceJet as its Chairman and Managing Director Ajay Singh was booked in Gurugram for allegedly duping a businessman on the pretext of allotting company shares to him, the police said on Monday. The complainant Amit Arora claimed Singh delivered a fake depository instruction slip (DIS) of 10,00,000 shares for services he provided to him.
Why does this story matter?
This comes at a time when the Directorate General of Civil Aviation (DGCA) on Wednesday issued a show-cause notice to SpiceJet after its planes witnessed several malfunction incidents over the past few days. The airline has three weeks to respond. In fact, SpiceJet topped the list of airlines whose services were regarded as the poorest by a survey by LocalCircles in May 2022.
DIS invalid, outdated: Arora
Arora, who is a consultant in the aviation sector providing non-aeronautical services including hospitality and airport retail at various airports in the country, alleged that Singh had promised to give him 10,00,000 SpiceJet shares for his services. However, the DIS turned out to be invalid and outdated. He approached Singh several times but to no avail and so had to press the charges.
Company in a dire financial situation
In 2015, the erstwhile promoters of SpiceJet, Kalanithi Maran and Kal Airways Private Limited, entered into a Share Sale and Purchase Agreement with Singh, and their entire shareholding was transferred to Singh, claimed Arora. Arora said Singh then asked him to take over the company as it was in a dire financial situation. The company required a complete overhaul and financial restructuring, he added.
Arora worked for Singh in good faith
Singh promised to transfer 10,00,000 shares to Arora, who worked in good faith and delivered his services. In October 2016, the complainant requested Singh to transfer the shares as was promised to him. However, instead of transferring shares, Singh provided a DIS. When it was represented to the depository participant, Global Capital Markets Limited, he was informed that it was invalid and outdated.
Other similar fraud cases against Singh
Earlier, Singh used to state that the slips were valid, however, later he said that fresh slips would be provided, claimed Arora. Singh also refused to meet Arora in 2017. Later, Arora got to know of the other similar fraud cases against Singh. Arora also said that the arbitration proceedings allegedly pending between Singh and the erstwhile promoters were ruled in Singh's favor, too.
Charges against Singh being verified: Police
Poonam Hooda, SHO of Gurugram's Sushant Lok Police Station, said charges against Singh were being verified and action would be taken as per law. A case under IPC Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant or by banker, merchant, or agent), 415 (deception), 417 (cheating), and 420 (cheating and dishonestly inducing delivery of property) was filed.
Airline issues statement over the matter
"A frivolous, mischievous, and completely bogus complaint has been filed by liquor dealer Amit Arora with the Gurgaon Police with an intention to hurt SpiceJet and Mr. Ajay Singh's image," a SpiceJet spokesperson stated. "At no point has the company sought any service from him, nor did he ever provide any...service to SpiceJet. A defamation suit will be filed against the complainant," they added.
