The Central Bureau of Investigation (CBI) on Friday searched offices of the now defunct Jet Airways and the residence and offices of its founder Naresh Goyal in connection with an alleged bank fraud case.
The CBI has registered a case against Jet Airways, Naresh Goyal, wife Anita Goyal, and former director Gaurang Ananda Shetty for duping Canara Bank to the tune of ₹538 crore. The raids are on at seven locations in Mumbai, including the residences and offices of the accused and Jet Airways.
Complaint by Canara Bank Chief General Manager
The FIR registered on Wednesday, on the basis of a complaint by Canara Bank Chief General Manager P Santosh, had named Goyal and the others. The complaint made accusations of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct leading to an alleged loss of ₹538.62 crore to Canara bank.
The premier investigation agency is probing the airline for alleged cheating and misappropriation of funds borrowed from banks. The CBI probe indicates that funds were diverted during forensic audit into transactions allegedly linked to entities that had association with managerial personnel of Jet Airways.
The airline spent ₹11,152.62 crore on professional and consultancy expenses, of which transactions of ₹197.57 crore were found to be suspicious, according to investigation into the financial records of the company from April 1, 2011 to June 30, 2019. These entities reportedly had a turnover similar to the expense amount recorded by Jet Airways under the guise of professional and consultancy expenses.
Jet Airways operations shut in 2019
Jet Airways suspended its operations in April 2019 because of a severe cash crunch and mounting debt. The airline was then taken over by the Jalan-Kalrock consortium in June 2021.
However, the ownership transfer process has been facing headwinds for long. The airline's air operator certificate was revalidated by the Directorate General of Civil Aviation in May 2022, following which it announced its plans to recommence operations in September 2022. However, the relaunch has been delayed.
