The Enforcement Directorate (ED) on Friday night arrested Jet Airways pioneer and previous executive Naresh Goyal regarding a money laundering case related to an alleged bank fraud of ₹538 crore at Canara Bank. Goyal, 74, was arrested under the Prevention of Money Laundering Act (PMLA) after a long cross examination at the ED office in Mumbai. He is expected to be produced under the steady gaze of an exceptional PMLA court on Saturday, where the ED will look for his remand.
Foundation of the case
The money laundering case originates from a FIR filed by the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his better half Anita, and some previous company leaders with respect to an alleged ₹538-crore fraud at Canara Bank. The FIR was registered based on a protest by the bank, which claimed that it had sanctioned credit cutoff points and credits to Jet Airways (India) Ltd (JIL) to the tune of ₹848.86 crore, of which ₹538.62 crore was outstanding. The bank declared the record as “fraud” in July 2021.
The bank alleged that the forensic audit of JIL revealed that it had paid “related companies” ₹1,410.41 crore out of all out commission costs, subsequently redirecting assets from JIL. The bank additionally accused JIL of paying different costs adding up to ₹403.27 crore to General Selling Agents (GSA), which was not as per the GSA understanding. The bank additionally alleged that individual costs, for example, compensations of staff, telephone bills, and vehicle costs of the Goyal family were paid by JIL.
The bank likewise claimed that assets were diverted through Jet Lite (India) Ltd (JLL), an auxiliary of JIL, by making advances, effective financial planning, and hence discounting something similar by making arrangements. JIL allegedly extended credits and advances and speculations to JLL, which were not recovered.
ED’s action
The ED had conducted raids against Goyal and others involved in the bank fraud case in July this year, after the CBI lodged the FIR. The ED seized a few reports and computerized proof during the pursuits. The ED likewise attached assets worth ₹18 crore having a place with Goyal and his better half under the PMLA in December 2019.
The ED alleged that Goyal and his better half were involved in laundering the proceeds of wrongdoing generated from the fraudulent activities of JIL and JLL. The ED claimed that Goyal had created different shell companies in India and abroad to redirect reserves and dodge charges. The ED additionally alleged that Goyal had acquired foreign assets worth ₹1.12 billion by utilizing unlawful means.
The ED said that it had gathered sufficient proof to demonstrate Goyal’s contribution in the money laundering case and subsequently arrested him on Friday night.
