Naresh Goyal, the founder of Jet Airways has been taken into custody by the Enforcement Directorate (ED) in connection, with a money laundering case involving a bank fraud of Rs 538 crore, at Canara Bank. The arrest comes after raids conducted in July and a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against Jet Airways and its executives. The bank has alleged that funds were diverted through affiliated companies, which ultimately led to the closure of the airline.
Jet Airways founder, Naresh Goyal was arrested by the Enforcement Directorate (ED) on the night of September 1. He has been implicated in a money laundering case involving an alleged bank fraud of Rs 538 crore, at Canara Bank.
The arrest was made under the Prevention of Money Laundering Act (PMLA) after a round of questioning at the EDs office in Mumbai.
This year on July 19 the ED conducted. Raids at several premises in Mumbai and other locations as part of their investigation into Naresh Goyal and others. The investigation is being carried out under the provisions of the Prevention of Money Laundering Act (PMLA).
The Central Bureau of Investigation (CBI) had previously filed an FIR against Jet Airways, Naresh Goyal, his wife Anita, and some former company executives in connection with an alleged fraud amounting to Rs 538 crore at Canara Bank.
The CBIs FIR was based on a complaint lodged by Canara Bank, which claimed that they had sanctioned credit limits and loans amounting to Rs 848.86 crore to Jet Airways (India) Limited (JIL) with Rs 538.62 crore.
Following these developments, Jet Airways has ceased operations. Its account was declared “fraudulent” by CBI, on July 29, 2021.
The bank claims that the forensic audit of JIL revealed that it transferred Rs 1,410.41 crore to “related companies” as part of commission expenses thereby diverting funds from JIL.
Among allegations, it came to light during the audit that funds were also diverted through Jet Lite (India) Limited (JLL) by means of making advance payments and investing in them and subsequently writing off those investments by making provisions.
According to the complaint JIL redirected funds, to its subsidiary, JLL, in the form of loans, advances, and investments.
