In a rejoinder to dna on its report 'Spicejet diverts Rs 875 cr to sister companies' that appeared on January 14, SpiceJet has said, “For all related party transaction entered into by the Company under such arrangement, the aggregate value of transaction for the financial years 2011-12, 2012-13 and 2013-14 taken together is merely Rs 36.63 crore and is completely insignificant to the amount reported in the media' . SpiceJet also writes, "The agreements cited are draft agreements which is a basis for seeking regulatory approval and nothing significant to the tune of Rs 875 crore mentioned in the report have been auctioned by the company.”
In a rejoinder to dna on its report 'Spicejet diverts Rs 875 cr to sister companies' that appeared on January 14, SpiceJet has said, “For all related party transaction entered into by the Company under such arrangement, the aggregate value of transaction for the financial years 2011-12, 2012-13 and 2013-14 taken together is merely Rs 36.63 crore and is completely insignificant to the amount reported in the media' . SpiceJet also writes, "The agreements cited are draft agreements which is a basis for seeking regulatory approval and nothing significant to the tune of Rs 875 crore mentioned in the report have been auctioned by the company.”
dna's response: The article delves into the value of contracts envisaged by SpiceJet with Mr Maran’s group companies. The story is not about the ‘value of transactions’ as pointed out by SpiceJet. SpiceJet had sought and received approvals for the contracts from the government. The objective for seeking approvals was to give business to other companies owned by Mr Kalanithi Maran. The payment for the services rendered to SpiceJet as envisaged in the contracts and resolutions was to be made from the airline's finances and would have enriched Mr Maran's other companies. The article details the business in monetary terms that was envisaged to be given by SpiceJet to Mr Maran's other companies. Those amounts were mentioned in the resolutions passed by SpiceJet's board whose meetings were attended by Mr Kalanithi Maran. And in those resolutions, the maximum value of contracts of SpiceJet with 8 other companies of the Sun Group signed in 2012 to 2013 for a period of 5 years stood at Rs 875 crore.
SpiceJet also says, ‘The article is defamatory and highly prejudicial to SpiceJet’s standing as a professionally run airline’
dna's response: dna report does not question the legality of these contracts. The report details how Mr Maran wanted his other firms to spread wings on SpiceJet money. The headline of the article intended to describe the value of the contracts and not the value of the transactions. In other words SpiceJet sought approvals from the government to give business worth Rs 875 crores to Mr Maran's companies
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