Spicejet denies CBI investigating co, promoters | india | Hindustan Times
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Spicejet denies CBI investigating co, promoters

The Central Bureau of Investigation has not been in touch with Spicejet Ltd, the air carrier told the stock exchange today, after market talk of a probe sent its shares down by as much as 12%.

india Updated: Feb 07, 2011 18:27 IST

The Central Bureau of Investigation (CBI) has not been in touch with Spicejet Ltd, the air carrier told the stock exchange on Monday, after market talk of a probe sent its shares down by as much as 12%.

Spicejet sent out a notice to the exchange calling the report about an investigation totally false and said that the purchase of Spicejet shares by the promoter have been according to statutory requirements.

Kalanithi Maran, the founder of Sun TV had purchased a stake in Spicejet in June 2010.

The CBI, investigating a telecoms scam, last week, arrested a former minister from the political party headed by Maran's relative.

"This is a complete rumour, there is no basis for it. There has been no CBI effort to reach out to either the promoters or to Sun TV, or anybody at Spicejet," Ajay Vidyasagar, Sun TV's chief operating officer said. Sun's shares also fell as much as 20% during the day.

Funds for Maran's purchase of Spicejet were raised by borrowing from mutual funds and financial institutions against pledge of shares held by him in Sun TV, the airline said.

A CBI official chose not to talk about the SpiceJet transaction, but said that the telecoms graft investigations are leading in all directions.

Shares of Sun TV recovered to end 11.5% down at 410.65 rupees in a flat Mumbai market after losing 20% earlier in the day. Spicejet shares pared losses to close 2.06% down at 47.65 rupees during the day.