MUMBAI: Naresh Goyal, the founder of Jet Airways, found himself in a legal quagmire as he was brought before the Special PMLA Court in Mumbai. This occurred after his custody under the Enforcement Directorate (ED) ended on Monday. Goyal's arrest is in connection with an alleged fraud case amounting to Rs 538 crores. Earlier this month, he was remanded in ED custody until September 11.
The ED has alleged that funds borrowed by the now-defunct Jet Airways (India) Limited (JIL) from Canara Bank were misused for various unauthorized purposes, including the purchase of furniture, clothing, and jewelry. Shockingly, these funds were also reportedly utilized to cover the salaries of Goyal's household staff and to meet operational expenses for a production company owned by his daughter.
The 74-year-old Goyal was apprehended by the ED based on an FIR (First Information Report) filed by the Central Bureau of Investigation (CBI) back in May of this year. The FIR implicated Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty, and unidentified public servants and private individuals as accused parties.
The FIR specifically states, "CGM of Canara Bank, Recovery & Legal Section in Mumbai, has submitted regarding alleged offenses of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct committed by M/s Jet Airways (India) Ltd., Naresh Jagdishrai Goyal, Anita Naresh Goyal, Gaurang Ananda Shetty and unknown public servants and others causing wrongful loss of Rs 538.62 crores to Canara Bank."
It is important to note that Goyal's arrest by the Central agency took place on September 1 under the Prevention of Money Laundering Act (PMLA) following an extensive interrogation at the ED's Mumbai office. He was subsequently presented before the court the next day. The FIR itself stems from a complaint lodged by Canara Bank, alleging that it had granted credit limits and loans to Jet Airways (India) Ltd totaling Rs 848.86 crores, of which Rs 538.62 crores remained outstanding.
This ongoing legal saga has thrown a spotlight on corporate governance and financial impropriety within the aviation industry, marking a significant chapter in the downfall of one of India's once-prominent airlines and its founder, Naresh Goyal.
ALSO WATCH: