Mumbai: Jet Airways founder Naresh Goyal has approached the Bombay High Court, challenging his arrest and his remand term until September 29, terming it as "unwarranted, arbitrary, and illegal."
Goyal filed the petition in the High Court on September 14, a day after the special court under the Prevention of Money Laundering (PMLA) Act remanded him to judicial custody until September 29.
The Directorate of Enforcement (ED) arrested him on September 1 in an alleged money laundering case related to a Rs 538 crore fraud with Canara Bank.
Goyal: Procedures under the law were not followed
Goyal, 74, has not only challenged the September 1 arrest order and arrest memo but has also challenged the remand order of September 29, claiming that procedures under the law were not followed. It claims that the arrest was done without complying with the mandatory requirements of section 19 of the PMLA Act and hence the arrest is "vitiated," and that he is entitled to be released forthwith.
The special judge failed to satisfy himself that there was due compliance with the mandatory requirements under the Act. Hence, the remand orders further perpetuate the "illegal and high-handed" acts of the investigating agency, he has alleged in the plea.
The Central Bureau of Investigation (CBI) had registered an FIR on May 3 following a complaint by Canara Bank alleging offenses of cheating, conspiracy, and criminal breach of trust by Jet Airways (India) Ltd and Goyal in connivance with other accused to siphon off bank funds to the tune of Rs 538 crores.
The ED registered its case based on the CBI FIR. The ED case involves a large number of banking transactions with high-value cash withdrawals from funds related to loans obtained by the accused.
A division bench of Justices Revati Mohite-Dere and Gauri Godse has scheduled the plea for a hearing on September 20.
