Bank fraud
ED arrests Jet Airways founder Naresh Goyal in alleged Rs. 538 crore money laundering case
New Delhi/IBNS: The Enforcement Directorate (ED) Friday arrested Jet Airways founder Naresh Goyal in an alleged Rs. 538 crore money laundering case linked to Canara Bank, media reports said.
The ED has taken Goyal into its custody under the Prevention of Money Laundering Act (PMLA), following a long session of questioning at the Mumbai office.
Goyal, 74, will be produced before a special PMLA court in Mumbai on Saturday, where the ED will seek his custodial remand.
The money laundering case emerged from an FIR by the Central Bureau of Investigation (CBI) against 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 filed by Canara Bank where it alleged to have 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 is outstanding.
According to the CBI, the account was declared "fraud" in July 2021 after the bank alleged the forensic audit of JIL showed it paid "related companies" Rs. 1,410.41 crore out of total commission expenses, thus siphoning off funds from JIL.
The FIR stated that personal expenses such as staff salaries, phone bills, and vehicle expenses, among others, of the Goyal family were paid by JIL.
During the forensic audit, it came to the fore that funds were also siphoned off through Jet Lite (India) Ltd (JLL) by making advances and investing and subsequently writing off the same by making provisions.
JIL allegedly diverted the funds for the subsidiary JLL in the form of loan advances and investments extended.
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