Jet Airways founder Naresh Goyal arrested in ₹538 crore bank fraud money laundering case

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The Enforcement Directorate late Friday night arrested Jet Airways founder Naresh Goyal in a money laundering case linked to an alleged bank fraud of ₹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 questioning session at the central agency’s office.

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 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 concerning an alleged Rs 538-crore fraud case at the Canara Bank.

The FIR was registered on the bank’s complaint, which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) to Rs 848.86 crore, of which Rs 538.62 crore is 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 total commission expenses, thus siphoning off funds from JIL.

“As per the sample Agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of General Selling Agents (GSA) were 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 by JIL.

Among other allegations, it surfaced during the forensic audit that funds were also siphoned off through Jet Lite (India) Ltd ( JLL) by making advances, investing, and subsequently writing off of the same by making provisions. JIL diverted the funds for the subsidiary JLL in the form of loans and advances and investments extended.