Not much is known of Murari Lal Jalan, who leads the consortium that has won the bid for India's oldest private airline. Will he be able to turn around the company in a pandemic-ravaged sector?
Murali Lal Jalan, set to become the newest owner of Jet Airways, along with Kalrock Capital. Photo courtesy: NRI Achievers
Within India’s corporate echelons, Murari Lal Jalan remains something of an enigma. Not much is known about the greying and moustached millionaire who, along with London-based financial advisory firm Kalrock Capital, became the newest owner of India’s oldest private airline, Jet Airways. Jet, previously owned by billionaire businessman Naresh Goyal and Etihad Airways, had shut in April 2019 after its debt spiralled out of control. “The resolution plan submitted by Murari Lal Jalan and Florian Fritsch has been duly approved by the CoC (committee of creditors) as the successful resolution plan,” Ashish Chhawchharia, the resolution professional appointed by the lenders of the airline, said in a stock exchange filing on October 17. The consortium will now have to wait for clearance from the National Company Law Tribunal (NCLT) before the new owners can officially take over the reins. In July last year, the NCLT had approved bankruptcy proceedings against Jet. While Kalrock Capital is part of the Fritsch Group, an investment group founded by serial real estate and tech entrepreneur Florian Fritsch, 56-year-old Murari Lal Jalan remains a mystery. A casual search on Jalan on the internet is almost certain to land one on the website of a commercial and residential project being developed in Uzbekistan by the MJ Group, which envisages Jalan as “a man who has a global vision”. MJ Group, as the initials suggest, is owned by Jalan. “Traditional wisdom says ‘don’t put all your eggs in one basket’ and it perfectly applies on Mr Murari Lal Jalan,” says his profile on the website of Namangan Square, a residential complex being developed by the group in Uzbekistan’s eastern city of Namangan. The complex is spread over 18 hectares, featuring 1,500-odd luxury apartments. “An eminent figure in the business fraternity, Jalan is a veteran who has invested in diverse sectors like real estate, mining, trading, construction, fast-moving consumer goods, dairy, travel and tourism, and industrial works globally to name a few, minimising the risk factor,” the website adds. But Namangan Square is only the tip of the iceberg when it comes to Jalan’s empire. Besides that, MJ Group is developing three other real estate projects in Uzbekistan, including a five-star hotel, and has sought permissions to set up Minerva City, something the group calls a “city within a city”. The complex will have schools, colleges, and a university over some 100 hectares, with around 15,000 apartments, hotels, and shopping centres, costing over $500 million. On September 17, the group laid the foundation stone for the construction of the Minerva World of Knowledge International University in the Sergeli district of Tashkent. It plans to start the academic year in September 2021. “MJ Developers is the world-renowned firm with over 15 years of real estate experience,” the company says on its website. “Its headquarters is in Dubai and company executives got business experience in diverse industries spanning over 40 years in a range of countries including India, Russia, Brazil, UAE, and now Uzbekistan.” Shadow figure"He holds a nominal stake of 0.1 percent in the company," a person close to Jalan said on conditions of anonymity. "However, the company never got off the grounds as its bank accounts have not yet been opened and has not been capitalised till date. The family relationship of Mr Jalan’s brother and his family has no relation to the business activities of Mr Jalan. Mr Jalan and his brother are two separate entities and their personal relationships have no connection with their business activities, which are separate and distinct."
That's something Madnani of Kalrock reiterates. “We have no links with the Patanjali group, which is Baba Ramdev’s,” says Manoj Madnani, a board member at Kalrock Capital. “The consortium consists of only two members—Jalan and Fritsch, and the entire investments will be made between these two only. Jalan has no business ties with any of the Gupta family. Nobody from the Gupta family is involved directly and indirectly in the business."
Yet, industry insiders say there could be more than what meets the eye. “The Gupta family has had some tryst with aviation and owns the New Delhi-based Heritage Aviation, an airline company that owns helicopters and a business jet and mostly undertakes pilgrimage trips,” says Martin of Martin Consulting. “They mostly undertake trips to the Himalayas, including Vaishno Devi.” According to the ministry of corporate affairs, Angoori Devi Gupta, a South African national, owns over 68 percent of Heritage Aviation. Angoori Devi is also the mother of the Gupta brothers. “With the new set of buyers, you never really know what’s going on,” another industry executive says. “If you wanted to start an airline, why did you wait this long? I won’t be surprised if Kalrock could be the front end of a deal.” A spokesperson on behalf of Murari Lal Jalan has clarified that he "has no business association or ties with Gupta brothers of South Africa and it is absolutely incorrect to link him to them or to any of their businesses." “What we bring to the table is corporate governance and compliance, and Jalan was the one who came up with this entire idea,” adds Madnani. “He (Jalan) sensed the opportunity and he said this is a sector, once it rebounds, will have a huge opportunity.” While Jalan and Kalrock have had a relationship early on, a decision to jointly bid for the airline, Madnani says, was taken around the time the pandemic had begun to sweep across the world. “This is as opportunistic as it gets,” Madnani adds. The joy of flying, once again