Delhi HC observes fraud charges against SpiceJet CMD 'Serious in nature'

The Delhi High court has observed that the fraud charges against SpiceJet Chairman and Managing Director Ajay Singh were serious in nature, while hearing the bail plea. The case pertains to the transfer of shares of the low-cost airlines to certain individuals.

"The allegations in the complaint seem to be serious in nature," observed Judge Dinesh Kumar. He further urged the parties to explore options for a settlement.

Also Read: SpiceJet to get ₹500 crore from promoter & chairman Ajay Singh

A Delhi based businessman and his family had alleged that they had signed a share purchase agreement with Singh and paid Rs 10 lakh for 10 lakh shares. However, Singh had failed to deliver the shares and had given them invalid and outdated delivery instruction slip (DIS).

The high court in April 2022, had given Ajay Singh interim relief against any coercive action by the police. Last month, a trial court rejected his anticipatory bail plea stating that it did not find sufficient grounds to grant relief to him in view of the overall facts and circumstances of the case and the gravity of the offence.

Meanwhile, the company shares have been hit and the prices have fallen 1.3% closing at Rs 29.68 after the court's observation.