FIR against former Go First board for alleged fraud over post-insolvency ticket sales
Authorities have registered a First Information Report against the former board members of Go First airline following allegations of fraudulent ticket sales. The case centers on the continued collection of passenger fares even after the airline had declared insolvency and grounded its operations.
The Delhi Police have initiated legal proceedings against the former management of Go First after complaints suggested that the airline knowingly sold tickets to the public while facing an imminent collapse. The FIR alleges that the company engaged in deceptive practices by accepting payments for flights that the board was aware would not be operated due to the ongoing insolvency proceedings.
Investors and passengers filed grievances across multiple jurisdictions, claiming that funds were misappropriated and not returned to customers after flight cancellations. Investigators are currently examining the financial records and communications of the former board to determine if there was a premeditated intent to defraud consumers before the airline officially entered the Corporate Insolvency Resolution Process.
Former directors have previously denied allegations of wrongdoing, citing the sudden failure of engines provided by Pratt & Whitney as the primary catalyst for the airline's financial distress. However, the current police investigation focuses specifically on the timeline of ticket sales relative to the filing for bankruptcy protection at the National Company Law Tribunal.
Further updates are expected as authorities summon former executives for questioning regarding the airline's final days of operation. Source: Reuters.
