Jet Airways founder Naresh Goyal diverted Rs 9.46 crore from Canara Bank to pay personal loans: ED 

The Enforcement Directorate (ED) on Saturday produced Jet Airways founder Naresh Goyal  before a PMLA court in Mumbai. The ED told the court that Goyal diverted Rs 9.46 crores out of the loan amount from Canara Bank to pay personal loans. The central agency further said that salary and payments for the production house owned by Goyal's daughter Namrata Goyal was diverted from Jet Airways' account.  

The central agency on Friday night arrested Goyal in a money laundering case linked to an alleged bank fraud worth around Rs 538 crore at Canara Bank. The Jet Airways founder was taken into custody under the Prevention of Money Laundering Act (PMLA) after hours of questioning at the ED's Mumbai office. 

The ED cited select email communication in the court to substantiate its charges against Goyal. The central agency conducted searches across several locations in Mumbai and Delhi. The ED claimed all these payments were made by Goyal’s secretary on his orders and that economic offences were committed between 2011 and 2019 in a planned manner, India Today reported.  

The Enforcement Directorate has also sought Goyal’s custody as he has overseas companies and funds have allegedly been diverted to those companies. Goyal also allegedly has immovable properties in overseas locations. The ED also said that it needs answers from Goyal on details about the diversion of loan money.  

The money laundering case against Goyal comes from a Central Bureau of Investigation (CBI) FIR against Jet Airways, Naresh Goyal, his wife Anita and some former company executives in connection with an alleged bank fraud worth around Rs 538 crore 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. to the tune of Rs 848.86 crore of which Rs 538.62 crore is outstanding. The CBI said the account was declared “fraud” on July 29, 2021, according to PTI.   

''As per sample Agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of General Selling Agents (GSA) was to be borne by GSA itself and nor by JIL. However, it was observed that 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 also claimed that personal expenses such as salaries of staff, phone bills and vehicle expenses of the Goyal family among others were payed by JIL. During forensic audits, it was also discovered that funds were also siphoned off through Jet Lite (India) Ltd (JLL) by making advance and investing and subsequently writing off of the same by making provision.  

JIL diverted the funds for JLL in the form of loans and advancements and investments extended. After flying for around 25 years, Jet Airways had shut its operations in April 2019. The airline could not generate funds for continuing operations and suffered heavy losses.  

(With inputs from Divyesh Singh, PTI) 

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