Who is Naresh Goyal, the Jet Airways founder arrested by ED?
The ED had conducted raids against Goyal and others involved in the bank fraud case after the Central Bureau of Investigation (CBI) filed an FIR against Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal and private individuals in connection with the Rs 538-crore fraud case at Canara Bank.
The Enforcement Directorate (ED) on Friday (September 1) arrested Naresh Goyal, the founder and former chairman of Jet Airways, in connection with a money laundering case related to an alleged fraud of Rs 538 crore at Canara Bank.
Goyal, aged 74, was taken into custody under the Prevention of Money Laundering Act (PMLA) after an extensive questioning session at the central agency's office in Mumbai. He is expected to appear before a special PMLA court in Mumbai on Saturday, where the ED will seek his custodial remand.
In July this year, the ED had conducted raids against Goyal and others involved in the bank fraud case after the Central Bureau of Investigation (CBI) filed an FIR against Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty, and unknown public servants and private individuals in connection with the Rs 538-crore fraud case at Canara Bank.
Here's why the ED took Naresh Goyal into custody:
1. Jet Airways, established by Naresh Goyal, a non-resident Indian (NRI) businessman, as a limited liability company in April 1992, ceased its operations in April 2019 due to financial difficulties.
2. In March 2019, amidst the financial crisis, he resigned from the Board of Jet Airways along with his wife.
3. The CBI registered an FIR against Goyal after the bank alleged that credit limits and loans to Jet Airways (India) Ltd (JIL) amounting to Rs 848.86 crore were sanctioned, of which Rs 538.62 crore remained outstanding.
4. The CBI later declared the account as a "fraud" in July 2021.
5. The complaint, now part of the CBI FIR, alleged discrepancies with the sample agreement of Jet Airways (India) Ltd (JIL), which stated that General Selling Agents (GSA) expenses should be borne by GSA itself and not by JIL. However, it was observed that JIL had paid various expenses totaling Rs 403.27 crore, not in line with the GSA agreement.
6. The bank further claimed that the forensic audit of the airline revealed that it had paid "related companies" Rs 1,410.41 crore out of the total commission expenses, effectively diverting funds from JIL. Additionally, personal expenses such as staff salaries, phone bills, and vehicle expenses for the Goyal family were paid by JIL.
7. Funds were also redirected through Jet Lite (India) Ltd (JLL) through advance payments, investments, and subsequent write-offs, involving provisions.