ED Arrests Jet Airways Founder Naresh Goyal in ₹538 Crore Bank Fraud Case

New Delhi : The Enforcement Directorate (ED) arrested Jet Airways founder Naresh Goyal on Friday night after questioning him for several hours in connection with its money-laundering investigation into an alleged bank fraud of around ₹538.62 crore.

Goyal was brought to Mumbai from Delhi by an ED team on Friday afternoon. He was placed under arrest at around 11 pm after being questioned for over six hours in the agency's office in Worli. He will be produced in the PMLA court on Saturday for remand by the agency.

The ED's money-laundering case is based upon a May 3 First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against Jet Airways (India) Limited (JIL), Goyal, his wife Anita and former company executive Gaurang Ananda Shetty and unknown public servants and private persons in connection with the alleged fraud at Canara Bank.

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The CBI registered its case based upon a complaint in November 2022 from Canara Bank, Mumbai. The case, registered under sections of the Indian Penal Code and Prevention of Corruption Act, related to the alleged offences of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct against the accused for causing the bank a loss of ₹538.62 crore.

The bank alleged that it had sanctioned credit limits and loans to JIL to the tune of ₹848.86 crore, of which ₹538.62 crore was outstanding. The loan account was declared an alleged fraud in July 2021.

The bank had alleged that the forensic audit conducted in the accounts of Jet Airways (India) Ltd revealed alleged fraudulent features like diversion and siphoning of funds. It was also alleged that funds were diverted through Jet Lite (India) Limited.

The bank alleged that the accused's transactions pointed towards cheating, misappropriation of funds by the borrower and siphoning of funds borrowed from the bank towards utilisation for purposes unrelated to the operations of the borrower, to the detriment of the financial health of the entity and/or the lender.

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The ED is likely to question Goyal about his role in the alleged fraud and the routing of funds. He is also likely to be asked about his relationship with other accused in the case.

This is the second time that Goyal has been arrested by the ED in connection with a money-laundering case. In February 2020, he was arrested in connection with a case related to the alleged diversion of funds from Jet Airways to other entities owned by him. He was later released on bail.

Goyal is a well-known businessman and the founder of Jet Airways. He stepped down as chairman of the airline in 2019.

The arrest of Goyal is a major development in the ED's investigation into the alleged bank fraud case. The agency is likely to take the case to its logical conclusion and bring the accused to book.

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