• Source:JND
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Jet Airways Founder Arrest: The Enforcement Directorate (ED) on Friday arrested Jet Airways founder and former chairman Naresh Goyal in a money laundering case associated with an alleged bank fraud of Rs 538 crore at Canara Bank.

Jet Airways founder was taken into custody under the Prevention of Money Laundering Act (PMLA) following a grilling session at the ED's office in Mumbai. Reportedly, Naresh Goyal is expected to be produced before a special PMLA court in Mumbai on Saturday where the ED will seek his custodial remand.

What Is the Money Laundering Case?

The money laundering case started after an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives in connection with the alleged Rs 538-crore fraud case at the Canara Bank.  The bank alleged that the forensic audit of JIL showed that it paid "related companies" Rs 1,410.41 crore out of total commission expenses, thus siphoning off funds from JIL.

"As per the sample agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of General Selling 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 Rs 403.27 crore which is not in tune with the GSA," the complaint now part of the CBI FIR alleged.
It said personal expenses such as salaries of staff, phone bills and vehicle expenses among others of the Goyal family were paid paid by JIL.

The Enforcement Directorate (ED) had carried out raids against Goyal and others involved in the case in July. The CBI FIR was registered on the bank's complaint which alleged that it 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 was outstanding. The CBI had said the account was declared "fraud" on July 29, 2021.

Who Is Naresh Goyal, Arrested In Bank Fraud?

Naresh Goyal is a non-resident Indian (NRI) businessman who founded Jet Airways in April 1992 as a limited liability company however, it shut its operations in April 2019, after running out of cash. Goyal stepped down from the Board of Jet Airways along with his wife in March 2019 amid the financial crisis.

Reportedly, Goyal was in talks with Etihad Airways for a stake sale in Jet following the government's decision in September to permit foreign airlines to invest up to 49 per cent in Indian carriers. He was awarded Commander of the Order of Leopold II by the Belgian government last year.

Meanwhile, in February this year, another money laundering case against Goyal linked to alleged cheating and forgery filed by Mumbai-based Akbar Travels was quashed by the Bombay High Court.