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| Edited By: |Source: Reuters |Updated: Mar 30, 2018, 04:05 AM IST
The Central Bureau of Investigation (CBI) has not been in touch with Spicejet Ltd, the air carrier told the stock exchange Monday, after market talk of a probe sent its shares down by as much as 12 percent.
Spicejet sent out a notice to the exchange calling the report about an investigation totally false and said 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 last year. 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 told Reuters. Sun's shares also fell as much as 20 percent 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 to Reuters, but said the telecoms graft investigations are leading in all directions.
Shares of Sun TV recovered to end 11.5 percent down at 410.65 rupees in a flat Mumbai market after losing 20 percent earlier in the day. Spicejet shares pared losses to close 2.06 percent down at 47.65 rupees during the day.
