Former Chairman and Founder of Jet Airways, Naresh Goyal, has been detained by the Enforcement Directorate (ED) in connection with a money laundering case linked to an alleged dollar 538 Crore fraud at Canara Bank.
The ED conducted raids against Goyal and other individuals involved in the bank fraud case in July. This action came after the Central Bureau of Investigation (CBI) initiated an FIR against Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty, and unidentified public servants and private individuals in connection with a Rs. 538 Crore fraud case at Canara Bank.
Why was Goyal arrested?
The arrest of Naresh Goyal is related to a number of incidents that led to Jet Airways’ demise. The Goyal-founded airline first had financial difficulties, which resulted in its operational closure in April 2019. In March 2019, Goyal and his wife both left the board of the business during this controversy. In response to the accusations made by Canara Bank, the Central Bureau of Investigation (CBI) filed a FIR against Goyal and others.
According to the bank, Jet Airways (India) Ltd. (JIL) received credit limits and loans totaling Rs. 848.86 Crore, with 538.62 Crore still due. The CBI formally deemed the account fake in July 2021. Additionally, there were inconsistencies with regards to expenditures, with JIL apparently paying Rs. 403.27 Crore in expenses that should have been paid by General Selling Agents (GSA), not JIL. Additionally, a forensic examination of the airline revealed that it had taken money intended for JIL and diverted it to “related companies” by paying commission expenses totaling Rs. 1,410.41 Crore.
Even personal costs for the Goyal family, such as salary, phone fees, and vehicle costs, allegedly went to JIL. The money was then transferred to Jet Lite (India) Ltd. (JLL) through loans, extended investments, and write-offs. JIL was responsible for sending the money to JLL. The arrest of Naresh Goyal is a significant move in the ongoing inquiry into financial wrongdoing at Jet Airways.