Enforcement Directorate (ED) on Friday night in connection with a money laundering case linked to an alleged bank fraud totaling approximately Rs 538 crore at Canara Bank. After extensive questioning at the ED's Mumbai office, the founder of Jet Airways was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).
Jet Airways, a prominent full-service carrier, ceased its operations in April 2019 due to financial constraints, ultimately leading to Naresh Goyal's resignation as the airline's chairman.
Goyal, Wife, company officials accused of defrauding Canara Bank
The money laundering case revolves around an FIR initiated by the Central Bureau of Investigation (CBI), targeting Jet Airways, Naresh Goyal, his wife Anita, and several former company executives. The allegations relate to an alleged fraud of Rs 538 crore at Canara Bank.
The Enforcement Directorate (ED) conducted raids in July against Naresh Goyal and other individuals involved in the case.
The CBI's FIR was filed based on a complaint from the bank, asserting that it had granted credit limits and loans amounting to Rs 848.86 crore to Jet Airways (India) Ltd (JIL), of which Rs 538.62 crore remained outstanding. The account was declared a "fraud" by the bank on July 29, 2021.
The bank's complaint also contended that a forensic audit of JIL revealed that it disbursed Rs 1,410.41 crore to "related companies" as part of commission expenses, thereby diverting funds from JIL. The CBI FIR includes an allegation that contradicts the sample agreement of Jet Airways (India) Ltd (JIL), indicating that General Selling Agents (GSA) expenses were supposed to be borne by GSA itself, not JIL. Nevertheless, it was discovered that JIL paid various expenses amounting to Rs 403.27 crore, deviating from the GSA agreement.
How Goyal diverted state-owned bank's loan for JIL to personal use
The complaint further stated that personal expenses, such as salaries for staff, phone bills, and vehicle expenses of the Goyal family, were covered by JIL.
The Enforcement Directorate (ED) presented Jet Airways founder Naresh Goyal before a PMLA court in Mumbai on Saturday. In court, the ED referred to specific email communications to support its accusations against Goyal. These allegations include diverting Rs 9.46 crores from Canara Bank's loan amount for personal loan payments. Additionally, the investigative agency claimed that funds intended for salary and payments for a production house owned by Goyal's daughter, Namrata Goyal, were redirected from Jet Airways' accounts.
Naresh Goyal allegedly diverted a state-owned bank's loan from Jet Airways to purchase Jewellery and furniture for his family, while his daughter Namrata Goyal reportedly used the funds for house help and her production house.
In the course of the forensic audit, it was revealed that funds were also diverted through Jet Lite (India) Ltd (JLL) by advancing money, investing, and subsequently writing off these amounts by creating provisions. JIL redirected funds to its subsidiary JLL in the form of loans, advances, and investments.
This comprehensive account sheds light on the alleged financial irregularities and diversions that form the core of the Naresh Goyal and Jet Airways case.
