The Enforcement Directorate (ED) arrested Jet Airways founder Naresh Goyal on Friday in connection with a money laundering case linked to a bank fraud.
This arrest came after several hours of questioning at the central agency's office in Mumbai. Goyal, 74 years old, is set to appear before a special Prevention of Money Laundering Act (PMLA) court in Mumbai on Saturday, where the ED will request his custodial remand.
The ED's investigation revolves around allegations of loan defaults by the airline, resulting in a wrongful loss of Rs 539 crore to Canara Bank. Last November, the bank lodged a complaint against Naresh Goyal, his wife Anita, Gaurang Shetty, and public servants, citing alleged cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct.
In May, the Central Bureau of Investigation (CBI) registered a fraud case, which was followed by the ED filing a money laundering case. The bank's complaint formed the basis for the FIR, asserting that it had sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) amounting to Rs 848.86 crore, with Rs 538.62 crore still outstanding. Notably, the account was declared "fraud" on July 29, 2021.
The bank's forensic audit of JIL uncovered that it had disbursed a substantial sum of Rs 1,410.41 crore to "related companies" as part of commission expenses, effectively diverting funds from JIL. It further revealed that JIL had shouldered expenses, like salaries, phone bills, and vehicle costs, for the Goyal family, a violation of the agreement with the General Selling Agents (GSA).
Additionally, the forensic audit exposed fund diversion through Jet Lite (India) Ltd (JLL) via advance payments, investments, and subsequent write-offs, underlining the misappropriation of funds within the subsidiary. JIL had channeled funds to JLL in the form of loans, advances, and investments.
