ED arrests Jet Airways founder Naresh Goyal in bank fraud case
PTI, Sep 2, 2023, 8:18 AM IST
Image source: PTI / File
Mumbai: The Enforcement Directorate late Friday night arrested Jet Airways founder Naresh Goyal in a money laundering case linked to an alleged bank fraud of Rs 538 crore at the Canara Bank, official sources said.
He was taken into custody under the Prevention of Money Laundering Act (PMLA) following a long session of questioning at the central agency’s office here.
Goyal, 74, is expected to be produced before a special PMLA court in Mumbai on Saturday where the ED will seek his custodial remand, the sources said.
Jet Airways, a full-service carrier, had shut its operations in April, 2019, after running out of cash. Later, Goyal stepped down as the chairperson of the airline.
The money laundering case stems from an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives in connection with the alleged Rs 538-crore fraud case at the Canara Bank.
The Enforcement Directorate (ED) had carried out raids against Goyal and others involved in the case in July.
The CBI FIR was registered on the bank’s complaint which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding. The CBI had said the account was declared “fraud” on July 29, 2021.
The bank alleged that the forensic audit of JIL showed that it paid “related companies” Rs 1,410.41 crore out of a total commission expenses, thus siphoning off funds from JIL.
“As per sample agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of General Selling Agents (GSA) was to be borne by GSA itself and not by JIL. However, it was observed that JIL has paid various expenses amounting to Rs 403.27 crore which is not in tune with the GSA,” the complaint now part of the CBI FIR alleged.
It said personal expenses such as salaries of staff, phone bills and vehicle expenses among others of the Goyal family were paid paid by JIL.
Among other allegations, it surfaced during the forensic audit that funds were also siphoned off through Jet Lite (India) Ltd (JLL) by way of making advance and investing and subsequently writing off of the same by making provision.
JIL diverted the funds for subsidiary JLL in the form of loans and advances and investments extended.
In February, another money laundering case against Goyal, linked to alleged cheating and forgery filed by Mumbai-based Akbar Travels, was quashed by the Bombay High Court after the Maharashtra Police filed a closure report stating it found no substance in the complaint and the dispute seemed to be civil in nature.
As this ED case was based on police FIR, and was the predicate offence for filing a money laundering case, it was declared quashed by the high court.
A division bench of justices Revati Mohite Dere and Prithviraj Chavan quashed the ECIR (Enforcement Case Information Report or the ED equivalent of an FIR) registered on February 20, 2020, and all proceedings against Goyals on the ground of “being illegal and contrary” to law.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
New software for fast-tracking project approvals: Karnataka Minister Patil
In-flight passengers can access WiFi services only when allowed, say new rules
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag
Equity investors become poorer by Rs 7.37 lakh crore during morning trade as markets tumble
MUST WATCH
Latest Additions
MRPL offers Rs 1 cr to buy advanced TB testing machines
Salman Khan gets another threat, asked to cough up Rs 5 cr
Mangaluru: Vishwa Konkani Samaroh to be held on Nov 5 and 6
Canadian cop suspended for attending pro-Khalistan protest outside Hindu temple
Rahul Gandhi to attend caste census meeting in Hyderabad today
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.