Jet Airways founder Naresh Goyal was arrested by The Enforcement Directorate on Friday night in a money laundering case in connection with an alleged bank fraud of Rs 538 crore at the Canara Bank, official sources said.
The 74-year-old was taken into custody under the Prevention of Money Laundering Act (PMLA) following a long session of interrogation. Goyal had stepped down as the chairperson of Jet Airways after it had shut its operations in April, 2019 as the full-service carrier ran out of cash.
Money laundering case
The May 3 money laundering case is based on the CBI's FIR against Jet Airways, Goyal, his wife Anita, former company executives and others in connection with the alleged Rs 538-crore fraud case at the Canara Bank.
The ED raided residences and offices of Goyal and others involved in the case in July.
The bank, in their complaint to the CBI, alleged that it sanctioned credit limits and loans to Jet Airways to the tune of Rs 848.86 crore of which Rs 538.62 crore was not repaid. The CBI had said the account was declared "fraud" on July 29, 2021.
The bank alleged that the forensic audit of the company showed that it paid "related companies" Rs 1,410.41 crore out of a total commission expenses, thus siphoning off funds from the airways.
It was also alleged that funds were also siphoned off through Jet Lite (India) Ltd (JLL) by way of making advance and investing and subsequently writing off of the same by making provision.
The Goyal family's personal expenses including staff salaries, phone bills and vehicle expenses were allegedly paid by the airways.
"As per sample agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of General Selling Agents (GSA) was to be borne by GSA itself and not by JIL. However, it was observed that JIL has paid various expenses amounting to Rs 403.27 crore which is not in tune with the GSA," the complaint now part of the CBI FIR alleged.
Jet Airways which was earlier expected to resume operations last year under its new owners, is deadlocked with creditors over the resolution plan to revive the bankrupt company.
-- with PTI inputs