Naresh Goyal, who is 74 years old, was arrested in Mumbai after a lengthy interrogation, using the Prevention of Money Laundering Act (PMLA).
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On Friday, the Enforcement Directorate (ED) apprehended Naresh Goyal, the founder and former chairman of Jet Airways, in connection with a money laundering case linked to an alleged fraud of ₹538 crore at Canara Bank.
Goyal, who is 74 years old, was arrested by the authorities using the Prevention of Money Laundering Act (PMLA) after a lengthy period of questioning at the central agency’s office in Mumbai.
The ex-chairman is set to appear in a special PMLA court in Mumbai this Saturday, where the ED will request his custody, according to officials cited by news agency PTI.
In July this year, the Enforcement Directorate (ED) conducted searches on Mr. Naresh Goyal and other individuals connected to a bank fraud case. This action came after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) against Jet Airways (India) Limited, Mr. Naresh Goyal, his wife Anita Naresh Goyal, Mr. Gaurang Ananda Shetty, and unidentified government officials and private individuals. The case pertains to a fraud of ₹538 crores at Canara Bank.
Why did ED take Naresh Goyal in its custody?
| 1 | Jet Airways, which was started by Naresh Goyal, an Indian businessman living abroad (NRI), in April 1992 as a company with limited financial liability, ceased its operations in April 2019 due to a lack of funds. |
| 2 | He resigned from the Board of Jet Airways, along with his wife, in March 2019 because of the financial troubles. |
| 3 | The Central Bureau of Investigation (CBI) filed a First Information Report (FIR) against Mr. Goyal because the bank claimed that he approved credit limits and loans for Jet Airways (India) Ltd (JIL) totaling ₹848.86 crore, with ₹538.62 crore still unpaid. |
| 4 | The CBI later said the account was a “fraud” in July 2021. |
| 5 | The complaint, now part of the CBI FIR, stated that according to the sample agreement of Jet Airways (India) Ltd (JIL), it was mentioned that the General Selling Agents (GSA) should cover their own expenses, and JIL shouldn’t be responsible for them. However, it was found that JIL had actually paid various expenses totaling ₹403.27 crore, which goes against the agreement with the GSA. |
| 6 | The bank also stated that a detailed examination of the airline’s finances revealed that it transferred a whopping ₹1,410.41 crore to companies closely associated with it as part of commission expenses. This maneuver effectively drained money away from JIL. Not only that, but JIL even covered personal expenses like the salaries of Goyal family members, phone bills, and vehicle expenses. |
| 7 | Money was also secretly taken out through Jet Lite (India) Ltd (JLL) by giving it in advance and then putting it into investments, only to later cancel those investments by making financial allowances. |
| 8 | JIL has also been reported to have shifted money from its own account to support its subsidiary, JLL, through loans, advances, and investments. |