Naresh Goyal
Jet Airways founder Naresh Goyal’s recent arrest by the Enforcement Directorate (ED) has brought to light a complex money laundering case involving loans and credit lines from Canara Bank. Here’s a comprehensive look at the key elements of this case:
The Basis of the Case
The money laundering case stems from a First Information Report (FIR) filed against Jet Airways, Naresh Goyal, his wife Anita, and former company executives on May 3. Canara Bank had alleged a ₹538-crore fraud, leading to the registration of the FIR.
Canara Bank claimed to have sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) amounting to ₹848.86 crore, of which ₹538.62 crore remained unpaid.
Irregularities Uncovered
The CBI declared the account “fraudulent” in July 2021 and accused Jet Airways and its founders of siphoning funds. An investigation revealed that between April 1, 2011, and June 30, 2019, the airline had spent ₹1,152.62 crore on professional and consultancy expenses. Suspicious transactions worth ₹197.57 crore were identified among entities linked to the airline, with key managerial personnel allegedly connected to these entities.
Jet Airways had paid ₹420.43 crore of the total ₹1,152.62 crore in professional and consultancy expenses to entities whose business descriptions did not align with the services described in their invoices. The FIR also highlighted personal expenses, including the Goyal family’s salaries, phone bills, and vehicle expenses, being paid by JIL.
Questioning and Raids
Naresh Goyal was taken into custody after a lengthy interrogation at the ED’s office in Mumbai. Additionally, on May 5, the CBI conducted raids at the premises of Jet Airways founder and the airline’s former offices in connection with the Canara Bank fraud. In July, the ED also searched eight locations linked to Naresh Goyal and his associates.
Insolvency and Aftermath
Jet Airways, once India’s largest private carrier, ceased operations in April 2019 due to a severe cash crunch and mounting debt. In June 2021, the airline was acquired by a partnership between UAE-based businessman Murari Lal Jalan and London-based Kalrock Capital following a protracted insolvency process.
This case highlights the intricate financial and legal challenges faced by Jet Airways and its founder, Naresh Goyal, shedding light on the complexities of the aviation industry in India.
