Jet Airways founder Naresh Goyal was produced in the special PMLA court in Mumbai on Saturday and remanded to Enforcement Directorate custody till September 11. The ED cited select email communications in court to substantiate its charge that Goyal diverted Rs9.46 crore from a Canara Bank loan to settle personal loans.
Production house Filmstoc Pvt Ltd salaries & payment paid from airline's account
The agency further alleged that salary and payments for the production house Filmstoc Pvt Ltd, owned by Goyal’s daughter Namrata, were paid out from Jet Airways’ account.
Between 2010 and 2019 Goyal diverted Rs7.39 crore to his wife Anita, Rs1.1 crore to Namrata and Rs97 lakh to son Nivaan from Jet Airways accounts, it said.
An audit of Jet Airways’ account had revealed that Rs1,152.62 crore was diverted and siphoned off as professional and consultancy expenses between 2011 and 2018, the remand application alleged.
The agency alleged that Goyal, a non-resident Indian, had siphoned off funds to various companies and trusts in Jersey and British Virgin Islands. He acquired properties abroad, including Dubai and Britain, it said.
The court allowed Goyal’s lawyer’s request to allow him medicines, home food and a mattress in custody. The lawyer said he suffers from back pain and other medical issues.
PMLA case against Goyal
Goyal was arrested in a money laundering case linked to an alleged bank fraud of Rs538 crore at Canara Bank on Friday night.
The former chairman of the now defunct Jet was taken into custody after several hours of questioning at the ED’s Mumbai office.
Canara Bank said it had granted Jet Airways a working capital limit of Rs126 crore and an inland letter of credit / financial bank guarantee of Rs100 crore for commercial purposes.
Jet received another Rs400 crore as a term loan for operational expenses; Rs200 crore for aircraft reconfiguration, introduction of new routes, business promotion, and related activities; and an additional short-term loan of Rs17.52 crore.
The bank reported that its loan account became a non-performing asset on June 5, 2019. An audit of the company’s financial records for the period April 1, 2011-June 30, 2019, had revealed diversion and embezzlement of funds.
The bank alleged that related parties received Rs1,410.41 crore out of the total commission expenses, and funds were siphoned off through Jet Lite (India) Ltd through advances or investments, which were later written off.