Skyways Air Services Limited faces Delhi EOW FIR allegations

Sep 19, 2026•3 min read

Skyways Air Services Ltd.

SKYWAYS

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Skyways is named with listed material subsidiary Brace Port Logistics Limited and seven others in a Delhi Economic Offence Wing (EOW) first information report (FIR). PG Paper Company Limited alleges that three subsidiaries caused direct losses of at least Rs 44.20 crore in United Kingdom freight business; Skyways says it had no direct transactions with PG Paper.

What does the Delhi EOW FIR allege against Skyways?

The FIR dated December 12, 2025 alleges criminal breach of trust, cheating, creation and use of fake documents, and wrongful loss in freight business for PG Paper, a United Kingdom entity. FIR No. 172/25 was registered at the Delhi EOW against Skyways, Brace Port and seven other parties under cited provisions of the Bharatiya Nyaya Sanhita, 2023 (BNS), as well as provisions of the Indian Penal Code, 1860.

PG Paper alleges that RIV Worldwide Ltd. UK, Skyways SLS Logistik GMBH and Brace Port secured its freight business through coordinated conduct involving bribes to accused No. 1 and others, fraud, misrepresentation, corruption and concealment of transactions. The FIR identifies nine accused persons, including accused No. 1, who PG Paper says was engaged through a consultant company and was the main accused. These are allegations in a criminal complaint, not findings of guilt or a disclosed prosecution outcome.

PG Paper states in the FIR that business exceeding Rs 80 crore had been conducted by the three subsidiaries since 2021 and that it suffered estimated direct losses of not less than Rs 44.20 crore. The stated direct-loss figure excludes further alleged losses from freight rates that PG Paper says were artificially inflated through vendor restrictions, absence of fair competition and abandoned business opportunities.

How much United Kingdom freight business did Skyways report with PG Paper?

Skyways reports aggregate business of Rs 59.48 crore with PG Paper across Brace Port, RIV Worldwide and Skyways SLS Logistik from financial year 2020-21 through financial year 2025-26. The reported figure differs from PG Paper's FIR statement of business exceeding Rs 80 crore since 2021, and the disclosure does not reconcile the periods, measures or definitions behind the two amounts.

Brace Port accounted for Rs 54.06 crore of Skyways' reported Rs 59.48 crore aggregate business, while Skyways SLS Logistik accounted for Rs 5.37 crore and RIV Worldwide accounted for Rs 4.28 lakh. Brace Port therefore represented about 90.9% of the disclosed aggregate. The concentration means the disclosed relationship was principally conducted through Brace Port rather than the two overseas subsidiaries.

Aggregate business with PG Paper was Rs 4.04 crore in 2020-21, Rs 18.83 crore in 2021-22 and Rs 20.36 crore in 2022-23. It then fell to Rs 9.64 crore in 2023-24 and Rs 6.61 crore in 2024-25, while the disclosure records no business for 2025-26. The annual total therefore declined by Rs 13.75 crore between the 2022-23 peak and 2024-25.

What is Skyways' response and its link to Brace Port?

Skyways says the complaint primarily concerns dealings between PG Paper and its subsidiaries because Skyways had no direct transactions with the complainant. It identifies RIV Worldwide, Skyways SLS Logistik and Brace Port as the entities with business dealings with PG Paper, and says it and its subsidiaries are seeking legal recourse and will take an appropriate course of action.

PG Paper alleges that Skyways is Brace Port's parent and controlling company, held an 80% stake in the subsidiary, and that Skyways senior management materially influenced Brace Port's ownership structure and key operating decisions. Skyways separately discloses a 51.09% shareholding in Brace Port, which is listed on the EMERGE platform of the National Stock Exchange of India Limited. The supplied disclosure does not explain the difference between the FIR's 80% allegation and Skyways' stated 51.09% holding.

Skyways says its directors serve as non-executive directors on Brace Port's board and do not participate in or control the subsidiary's routine business operations. It states that Brace Port's designated management personnel and executive team independently administer daily management and operating affairs. This governance account is Skyways' stated factual position, while the FIR allegations remain unresolved in the supplied disclosure.

Why could the FIR matter to Skyways' operations and finances?

Skyways says adverse action from criminal proceedings could affect its and Brace Port's operations, reputation, ability to conduct business, financial condition and results of operations. It also says it cannot assure that criminal proceedings, if initiated, will not result in prosecution. The immediate issue is therefore an unresolved legal process rather than a disclosed final determination.

The legal risk sits alongside a working-capital model that relies on borrowing. Skyways' working-capital gap was Rs 311.07 crore in financial year 2025-26, compared with Rs 237.06 crore in 2024-25 and Rs 242.65 crore in 2023-24. Working-capital loans funded 86.23% of the 2025-26 gap, after funding 100.00% in 2024-25 and 82.62% in 2023-24.

Skyways also reports supplier concentration that could make counterparty relationships relevant if its reputation or access to services were affected. Its top 10 suppliers represented 49.00% of cost of service in 2025-26, compared with 46.93% in 2024-25 and 54.31% in 2023-24. Skyways says it did not lose a top-five or top-10 supplier during those three financial years, but the disclosure provides no supplier response to the FIR.

Conclusion

The disclosed position is that Skyways, listed material subsidiary Brace Port and other parties are named in a Delhi EOW FIR based on PG Paper's allegations over United Kingdom freight business. The principal scale measures are PG Paper's claim of at least Rs 44.20 crore in direct losses and Skyways' reported Rs 59.48 crore of business with PG Paper from 2020-21 to 2025-26, of which Brace Port contributed Rs 54.06 crore.

The next development to watch is the legal recourse Skyways says it and its subsidiaries are pursuing, including whether criminal proceedings are initiated and whether prosecution authorities take adverse action. Further clarification of the difference between the FIR's alleged 80% Brace Port ownership and Skyways' disclosed 51.09% stake would also address an unresolved point in the disclosure.

Frequently Asked Questions

FIR No. 172/25 was lodged at the Delhi Economic Offence Wing on December 12, 2025. PG Paper alleges bribery, cheating, fake documents, corruption and wrongful loss connected with freight business involving three Skyways subsidiaries. The supplied disclosure does not present the allegations as findings of guilt.

PG Paper alleges estimated direct losses of not less than Rs 44.20 crore. It says this excludes additional alleged losses from artificially inflated freight rates, vendor restrictions, lack of fair competition and abandoned opportunities. The FIR also states that business exceeding Rs 80 crore was conducted by the three subsidiaries since 2021.

Skyways says it had no direct transactions with PG Paper. It identifies Brace Port, RIV Worldwide and Skyways SLS Logistik as the entities that had business dealings with the United Kingdom complainant. Their aggregate disclosed business was Rs 59.48 crore from 2020-21 through 2025-26.

Brace Port is listed on the EMERGE platform of the National Stock Exchange of India Limited and is described as Skyways' material subsidiary. Skyways discloses a 51.09% holding in Brace Port. PG Paper separately alleges in the FIR that Skyways held 80% and materially influenced key decisions, which the supplied disclosure does not reconcile with Skyways' stated stake.

Skyways says it and its subsidiaries are seeking legal recourse and will take an appropriate course of action. It also says it cannot assure that criminal proceedings, if initiated, will not result in prosecution. Skyways states that adverse action could affect operations, reputation, business conduct, financial condition and results of operations.