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

The Enforcement Directorate arrested Naresh Goyal, the founder of beleaguered airline Jet Airways in a 2021 money laundering case worth ₹538.62 crore on Friday late night, according to a report by news agency PTI. Goyal is likely to be produced before a Special Prevention of Money Laundering Act (PMLA) in Mumbai today for remand.

As per the report, the case stems from an FIR (first information report) filed by the CBI (central bureau of investigation) against Goyal, his wife Anita Goyal and some former executives of Jet Airways in an alleged bank fraud case worth ₹538 crore. The CBI registered the FIR after Canara Bank in November last year alleged that it sanctioned credit limits and loans worth ₹848.86 crore to Jet Airways, of which ₹538.62 crore still remains outstanding. As per the FIR, the Jet Airways account was declared fraud on July 19, 2021. In May this year, the central agency conducted a probe against seven premises of Jet Airways including Goyal’s residence in connection with the case.

The bank alleged that Jet Airways siphoned off funds worth ₹1,410.41 crore to "related companies" out of total commission expenses. As per the report, the alleged amount has been diverted via Jet Lite (India) Limited.  "As per the sample agreement of JIL, it was noted that the expenses of the General Sales Agents (GSA) were to be borne by GSA itself and not by JIL. However, it was observed that JIL has paid various expenses amounting to ₹403.27 crore, which is not in tune with the GSA," the bank’s complaint stated.

Notably, Jet Airways shut operations in 2019 after it failed to pay vendors due to bankruptcy. The Jalan-Kalrock consortium took over the airline in October 2020 after placing a successful bid during the corporate insolvency resolution process from June 20, 2019, until June 22, 2021. In May last year, DGCA (Director General of Civil Aviation) granted an air operator's certificate (AOC) to Jet Airways to resume flight operations. However, despite getting a green signal from DGCA, the revival plan of Jet Airways has hit several roadblocks owing to non-payment of dues to the lenders.

Earlier on Friday, the Jalan-Kalrock Consortium deposited ₹100 crore as payment to lenders in Jet Airways following the National Company Law Appellate Tribunal’s August 28 order. NCLAT has asked Jalan-Kalrock Consortium to pay ₹350 crore to lenders till September 30. The consortium had earlier infused ₹150 crore as a performance bank guarantee in Jet Airways.