MUMBAI: In a significant turn of events, beleaguered and now totally defunct private airline company, Jet Airways is now facing a complete wipeout of investments following the Supreme Court's order to liquidate the airline. The court's decision comes after the Jalan Kalrock Consortium (JKC) failed to meet its financial obligations under the approved resolution plan.

The Supreme Court's ruling overturned the National Company Law Appellate Tribunal's (NCLAT) previous approval of the consortium's takeover bid, citing non-compliance with payment schedules. This has led to the forfeiture of Rs 200 crore already invested by JKC and the encashment of a Rs 150 crore performance bank guarantee (PBG) provided by the consortium during the insolvency resolution process.

Retail shareholders, who collectively held a 19.29% stake in Jet Airways, are now staring at a total loss of their investments. The airline's stock, which had been trading at Rs 34.04 on the Bombay Stock Exchange, saw a sharp decline following the court's decision.

Jet Airways which started in 1995 grew to be one of the largest airlines in India, with a 21.2% passenger market share in February 2016 and operated over 300 flights daily to 74 destinations worldwide from its former main hubs at Mumbai. With its competitors, mainly SpiceJet and IndiGo, lowering ticket fares in the following years, it was forced to follow suit, hurting overall performance and resulting in steep financial losses. 

It dropped to second place behind IndiGo in October 2017, with a passenger market share of 17.8%. The downward slide continued and resulted in bankruptcy in 2019. Jet Airways ceased operations in April 2019. In 2020, Jalan Kalrock Consortium comprising Murari Jalan and Kalrock Capital, was approved by NCLT to take over the airline.

The liquidation order marks a grim end for Jet Airways, which ceased operations in April 2019 due to mounting debts and financial woes. Despite efforts to revive the airline, the failure to adhere to the resolution plan has led to this unfortunate outcome.

The liquidation order by the Supreme Court marks a grim end for Jet Airways, which ceased operations in April 2019 due to mounting debts and financial woes. Despite efforts to revive the airline, the failure to adhere to the resolution plan has led to this unfortunate outcome leading to the wipeout of all investors and creditors.