Jet Airways Founder Naresh Goyal Arrested in Money Laundering Case
Late Friday night, Naresh Goyal, the founder of Jet Airways, was arrested by the Enforcement Directorate (ED) in a money laundering case related to an alleged bank fraud of Rs 538 crore at Canara Bank, according to official sources. Goyal was taken into custody under the Prevention of Money Laundering Act (PMLA) following a lengthy questioning session at the central agency’s office in Mumbai.
The 74-year-old Goyal is expected to be produced before a special PMLA court in Mumbai on Saturday, where the ED will seek his custodial remand. Jet Airways, a prominent full-service carrier, ceased its operations in April 2019 after encountering financial difficulties. Subsequently, Goyal stepped down as the chairperson of the airline.
The money laundering case originated from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita, and several former company executives in connection with the alleged Rs 538 crore fraud case at Canara Bank. The ED had conducted raids against Goyal and others involved in the case back in July.
According to the CBI FIR, Canara Bank alleged that it had sanctioned credit limits and loans totaling Rs 848.86 crore to Jet Airways (India) Ltd (JIL), out of which Rs 538.62 crore remained outstanding. The bank categorized the account as “fraud” on July 29, 2021.
The bank also claimed that a forensic audit of JIL revealed that it had paid “related companies” a sum of Rs 1,410.41 crore as part of commission expenses, thus diverting funds from JIL. The CBI FIR further alleged that JIL had paid various expenses amounting to Rs 403.27 crore, which were not in accordance with the General Selling Agents (GSA) agreement.
Additionally, the forensic audit revealed that funds were siphoned off through Jet Lite (India) Ltd (JLL) through the advanced payment and subsequent write-off. JIL diverted funds to its subsidiary JLL in the form of loans, advances, and investments.
In February, another money laundering case against Goyal, related to alleged cheating and forgery filed by Mumbai-based Akbar Travels, was dismissed by the Bombay High Court. The court quashed the Enforcement Case Information Report (ECIR) registered against Goyal and all proceedings, considering them “illegal and contrary” to the law.
Since the ED case was based on a police FIR and served as the predicate offense for filing the money laundering case, the high court deemed it quashed.
Goyal’s arrest marks a significant development in the ongoing investigation into the financial irregularities and alleged fraud at Jet Airways. The authorities are determined to bring the perpetrators to justice and recover the misappropriated funds.