The Delhi High Court has ordered SEBI to decide on fraud allegations against Skyways Air Services within two weeks, just as the company’s ₹582.8 crore IPO closed today. The case involves claims of systemic over-invoicing and forgery that are currently under police investigation.
The Delhi High Court has directed the Securities and Exchange Board of India (SEBI) to review formal complaints of fraud against Skyways Air Services Limited and its subsidiary, Brace Port Logistics Limited. The court has set a two-week deadline for the regulator to reach a decision on these representations.
These allegations were brought forward by UK-based PG Paper Company Limited. The complaint accuses the logistics group of orchestrating a scheme involving the fabrication of financial records and systemic over-invoicing, with claims that freight charges were inflated between 40% and 300% above market rates. This legal development coincides with the conclusion of the Skyways initial public offering (IPO), which closed for subscription today, August 27, 2026, after opening on August 24.
Investors are facing this news at a sensitive time, as the company had already disclosed in its Red Herring Prospectus (RHP) filed on August 11 that it is the subject of a criminal investigation. Specifically, the Economic Offences Wing (EOW) of the Delhi Police registered an FIR (No. 0172/2025) in December 2025 against the company and its subsidiary, naming them as accused parties in a criminal conspiracy. The allegations involve estimated direct losses of roughly ₹44.2 crore and broader business impact claims near ₹480 crore.
Beyond the legal and regulatory challenges, the company’s operational status and financial health are points for investors to monitor. Skyways’ AEO-LO (Authorized Economic Operator) status, which provides benefits in customs clearance, was suspended effective May 4, 2026, pending the outcome of the ongoing police investigation. This suspension can impact the efficiency of its logistics operations. Additionally, the company faces financial pressure, with a gross debt of approximately ₹505 crore as of June 30, 2026, and significant working capital requirements.
The regulatory scrutiny now rests on whether the details disclosed in the IPO documentation and the ongoing EOW probe require further action from SEBI. The core monitorable for investors over the next two weeks will be SEBI’s response to the High Court’s directive. The regulator’s decision will clarify whether the fraud allegations and the ongoing criminal investigation warrant any specific regulatory sanctions or if the current disclosures are deemed sufficient. Any future developments in the EOW probe or changes in the company's operational status will also remain key factors for those tracking the business.