Indian court sentences Jet Airways founder Naresh Goyal to custody in financial fraud case
MUMBAI, Sept 2 (Reuters) – Naresh Goyal, the founder of Jet Airways, will remain in custody until Sept. 11, according to a press statement from India’s financial crime agency, the Enforcement Directorate (ED). Goyal was arrested late on Friday by the ED, which investigates financial crimes in the country.
The case against Goyal is related to an alleged bank fraud case filed by state lender Canara Bank. The bank claims a loss of 5.38 billion Indian rupees ($65.06 million), while the ED estimates the losses to be much larger at 59.6 billion Indian rupees ($720.78 million) for a consortium of nine lenders.
Jet Airways, the second largest carrier in India by market share, has not yet responded to the arrest or the allegations. Goyal himself has not made any public statements regarding the case in the past.
According to the ED’s statement, under Goyal’s leadership, Jet Airways diverted funds to overseas entities in tax havens, including Dubai, Ireland, and the British Virgin Islands. The agency alleges that approximately 10 billion Indian rupees ($120.94 million) were used for the personal expenses of Goyal and his family members, disguised as professional and consultancy fees.
Goyal founded Jet Airways in 1992 but the airline shut down operations in April 2019 after running out of cash. The airline’s closure caused significant disruption in the Indian aviation industry.
The court’s decision to grant custody to the ED indicates the seriousness of the allegations against Goyal. Further investigations and legal proceedings are expected as the case continues.
($1 = 82.6887 Indian rupees)
Reporting by Jayshree P Upadhyay and Aditya Kalra
Editing by Tomasz Janowski and Ros Russell