Canara Bank Fraud Case: A Mumbai Court on Saturday sent Jet Airways founder Naresh Goyal to Enforcement Directorate (ED) custody till September 11 in connection with an alleged loan fraud involving Rs 538 crore of Canara Bank.
74-year-old Goyal was arrested late on Friday night under the Prevention of Money Laundering (PMLA) following a grilling session at the ED’s office in Mumbai. He was produced before the court on Saturday.
The investigation by the Enforcement Directorate is based on a case initiated by the Central Bureau of Investigation (CBI) in May on the complaint of Canara Bank. The CBI registered an FIR against the Jet Airways chairman, his wife Anita and others in a money laundering case.
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The FIR was registered on the complaint of Canara Bank, alleging that it sanctioned credit limits and loans to Jet Airways (India) Ltd worth Rs 848.86 crore, of which Rs 538.62 crore is still outstanding.
The bank also alleged that JIL's forensic investigation revealed that it paid "related companies" Rs 1,410.41 crore out of total commission expenses, thus siphoning off funds from JIL.
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The CBI in its FIR accused Goyal of cheating, criminal breach of trust, criminal conspiracy, and criminal misconduct. It also conducted raids in May at seven locations in Mumbai including Goyal’s offices and residence.
The ED has also conducted multi-city raids in connection with the money laundering case against the former promoter of Jet Airways and his associates.
Goyal, a non-resident Indian (NRI) founded Jet Airways in April 1992 as a limited liability company. However, the airline ceased operations in April 2019 due to financial issues. The company is reportedly undergoing a bankruptcy process.
Earlier in February this year, the Bombay High Court dismissed another money laundering case against Goyal related to alleged cheating and forgery filed by Mumbai-based Akbar Travels.