The Enforcement Directorate (ED) has arrested Jet Airways founder Naresh Goyal in connection with an alleged 538 crore money laundering case involving Canara Bank, according to sources.
Following a lengthy questioning session at the ED’s Mumbai headquarters, Mr Goyal was brought into prison under the Prevention of Money Laundering Act (PMLA).
Mr Goyal, 74, will be brought before a special PMLA court in Mumbai on Saturday, where the ED will seek his prison detention.
The money laundering case arises from a first information report (FIR) filed by the Central Bureau of Investigation (CBI) against Jet Airways, Mr Goyal, his wife Anita, and other former business executives in connection with an alleged 538 crore fraud case at Canara Bank.
After an extended period of interrogation at the central agency’s office, he was taken into custody in accordance with the Prevention of Money Laundering Act (PMLA). For “causing wrongful loss” to the lender, Canara Bank had filed a complaint in May against the airline, Goyal, his wife, and a former airline director.
According to the bank’s allegation, which formed the basis for the FIR, it approved credit limits and loans totaling $848.86 crore for Jet Airways (India) Ltd. (JIL), of which $538.62 crore is still unpaid.
The account was reportedly labelled “fraud” on July 29, 2021, according to the CBI.
The bank said that JIL’s forensic investigation revealed that it syphoned money from JIL by paying “related companies” 1,410.41 crore out of total commission expenses.
According to a sample agreement from Jet Airways (India) Ltd. (JIL), it was specified that General Selling Agents’ (GSA’s) fees were to be covered by GSA alone, not by JIL. But it was discovered that JIL had paid various charges totaling $403.27 crore that weren’t authorised by the GSA, according to the complaint that is now a part of the CBI FIR.
Ahead of the Fourth of July, the ED carried out operations across many cities, including Delhi and Mumbai.
A number of people were listed as defendants in the FIR, including Jet Airways (India) Limited, Naresh Goyal, his wife Anita Goyal, Gaurang Ananda Shetty, and unidentified public servants and private individuals.
According to the complaint, “CGM of Canara Bank, Recovery & Legal Section in Mumbai has submitted regarding alleged offences of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct committed by M/s Jet Airways (India) Ltd., Naresh Jagdishrai Goyal, Anita Naresh Goyal, Gaurang Ananda Shetty, and unknown public servants and others causing wrongful loss of 538.62 crores to Canara Bank.”
It went on to say that a forensic audit of Jet Airways (India) Ltd’s financial records had discovered fraudulent practises like money syphoning and diversion.
During the forensic audit, it was discovered that money was also embezzled through Jet Lite (India) Ltd (JLL), which made investments and advances before writing off the money with provisions.
JIL is accused of using loans, advances, and extended investments to transfer money intended for the subsidiary JLL.
