InvestorQ : Why is Kalanathi Maran suing the current owners of Spice Jet?
Arya Nanda made post

Why is Kalanathi Maran suing the current owners of Spice Jet?

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Anjana Aiyar answered.
1 month ago
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Kalanithi Maran, the owners of Sun TV, moved Delhi High Court to attach the properties of Ajay Singh for failure to deposit Rs.243 crore in favour of the Sun Group Chairman. This was as per the high court order to deposit the money in 6 weeks time i.e. by October 14.

The amount is interest on the sum Maran and KAL Airways won as refund from an arbitration panel in 2018. In this regard, the Maran brothers have sought attachment of the promoter, Ajay Singh’s shares. Ajay Singh had bought Spice Jet from the Maran brothers.

Ajay Singh and family hold 59.93% in SpiceJet and as the original promoter, Singh had owned just 2% when Maran exited the airline. If the shareholding is attached, Singh won't be allowed to dilute his stake in Spice Jet. Maran has also called for an administrator.

In 2015, Maran had transferred the airline for Rs.2 after Ajay Singh took over the debt of Rs.1500 crore. Now, post-COVID, Spice Jet is back in a cash crunch and has negative net worth of Rs.2170 crore.

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