New Delhi: Skyways Air Services Limited, which is set to open its initial public offering on August 24, has disclosed an ongoing Economic Offences Wing (EOW) investigation involving the company and its material subsidiary Brace Port Logistics Limited in connection with allegations of fraud, over-invoicing, forgery and criminal conspiracy, according to the company’s offer documents and a representation submitted to SEBI.
The company has fixed a price band of Rs 131-138 per equity share for the IPO, which will remain open from August 24 to August 27. The issue comprises a fresh issue of up to 2.89 crore equity shares and an offer-for-sale of up to 1.33 crore shares by existing shareholders.
The risk stems from FIR No. 0172 of 2025, registered by the EOW, Delhi, on December 12, 2025, pursuant to a complaint by UK-based PG Paper Company Limited. The FIR names Skyways Air Services as Accused No. 3 and its subsidiary Brace Port Logistics Limited as Accused No. 2. The RHP filed on August 11, 2026 discloses the FIR as an outstanding criminal proceeding against the company and its subsidiary.
According to the allegations cited in the RHP and the representation, PG Paper has alleged that Skyways group entities, including Brace Port, RIV Worldwide Ltd. UK and Skyways SLS Logistik GmbH, secured freight business through coordinated actions involving inflated freight invoices, alleged bribery, fraud and misrepresentation. The complainant has alleged that business exceeding Rs 800 crore was conducted through the three subsidiaries since 2021 and estimated its direct loss at not less than Rs 44.20 crore.
The representation submitted to SEBI by PG Paper further alleges that Brace Port and Skyways collectively over-invoiced the company by approximately Rs 44.20 crore.
It alleges that freight charges were artificially inflated, in some cases by around 40 per cent to as much as 300 per cent over prevailing market rates, and that internal checks were allegedly bypassed through inducements to an employee involved in freight procurement.
The FIR invokes provisions relating to criminal breach of trust, cheating, forgery, use of forged documents and criminal conspiracy under the Indian Penal Code and the Bharatiya Nyaya Sanhita.
Another significant risk highlighted in the documents is regulatory action following the FIR. The Central Board of Indirect Taxes and Customs (CBIC) issued a notice on May 14, 2026 for suspension and proposed revocation of Skyways’ Authorised Economic Operator-LO certificate.
The company’s AEO-LO status has remained suspended from May 4, 2026 pending the outcome of the investigation. Skyways submitted its response to the competent authority on July 28, 2026, and the matter remains pending.
(IANS)
