Jet Airways Founder Naresh Goyal Arrested in Money Laundering Case

NEW DELHI: In a significant development, the founder of Jet Airways, Naresh Goyal, was arrested by the Enforcement Directorate (ED) in connection with a money laundering case related to an alleged bank fraud of INR 538 crore at Canara Bank. Official sources reported that Goyal was taken into custody under the Prevention of Money Laundering Act (PMLA) following an extensive interrogation at the central agency's office in Mumbai.

Goyal is slated to appear before a special PMLA court in Mumbai, where the ED will seek his custodial remand. The FIR filed by the Central Bureau of Investigation (CBI) also implicated his wife, Anita, and several former company executives. Notably, Goyal had previously ignored two summonses issued by the ED.

The FIR stemmed from a complaint lodged by Canara Bank, alleging that it had granted credit limits and loans amounting to INR 848.86 crore to Jet Airways (India) Ltd (JIL), with INR 538.62 crore still outstanding. On July 29, 2021, the bank declared the account a "fraud." Canara Bank's complaint further contended that a forensic audit of JIL revealed that it disbursed INR 1,410.41 crore to "related companies" as commission expenses, effectively diverting funds from JIL.

The complaint, now part of the CBI FIR, highlighted discrepancies in JIL's financial practices. It revealed that expenses that were supposed to be borne by General Selling Agents (GSA) were instead covered by JIL, amounting to INR 403.27 crore. Moreover, personal expenses, including salaries of staff, phone bills, and vehicle expenses of the Goyal family, were allegedly paid by JIL.

The forensic audit also uncovered allegations that funds were siphoned off through Jet Lite (India) Ltd (JLL). This was purportedly achieved by providing advances, making investments, and subsequently writing them off, all under the guise of subsidiary support. JIL allegedly diverted funds to its subsidiary, JLL, in the form of loans, advances, and investments.

This arrest of Naresh Goyal marks a significant development in the ongoing investigation into the financial irregularities at Jet Airways. As the case unfolds, it raises questions about corporate governance and financial transparency within one of India's prominent aviation companies. 

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