ED arrests Jet Airways founder Naresh Goyal in Rs 538-cr bank fraud case

New Delhi, September 1

The Enforcement Directorate late Friday night arrested Jet Airways founder Naresh Goyal in a money laundering case linked to an alleged bank fraud of Rs 538 crore at Canara Bank, official sources said.

Embezzlement charge

• Canara Bank alleged audit showed Jet Airways paid ‘related firms’ Rs 1,410.41 cr of the total commission expenses, thus siphoning off funds
• Of the Rs 848.86 cr loan taken from Canara Bank, Rs 538.62 crore is outstanding
• Case stems from a CBI FIR against Jet Airways, Goyal, his wife Anita & ex-firm executives

Sources said Goyal (74) was taken into custody under the Prevention of Money Laundering Act (PMLA) following a long session of questioning at the ED office in Mumbai. He is expected to be produced before a special PMLA court in Mumbai tomorrow where the ED will seek his custody.

The money laundering case stems from an FIR of the CBI against Jet Airways, Goyal, his wife Anita and some former company executives in connection with an alleged Rs 538-crore fraud case at Canara Bank. The FIR was registered on the bank’s complaint, which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding. The CBI had said the account was declared “fraud” on July 29, 2021.

The bank alleged that the forensic audit of the JIL showed that it paid “related companies” Rs 1,410.41 crore of the total commission expenses, thus siphoning off funds from the JIL.

“As per the sample agreement of the JIL, it was noted that the expenses of general selling agents (GSA) was to be borne by the GSA itself and nor by the JIL. However, it was observed that the JIL has paid various expenses amounting to Rs 403.27 crore which is not in tune with the GSA,” the complaint, now part of the CBI FIR, alleged. It said personal expenses such as salaries of staff, phone bills and vehicle expenses among others of the Goyal family were paid paid by the JIL. Among other allegations, it surfaced during the forensic audit that funds were also siphoned off through Jet Lite (India) Ltd (JLL) by way of making advance and investing and subsequently writing off the same by making a provision.