Special PMLA Court in Mumbai, further sent the Jet Airways founder Naresh Goyal into judicial custody for 14 days on Thursday. He was produced before the court after his ED custody ended today.
Goyal was arrested on September 1 for allegedly defrauding Canara Bank of Rs 538 crore.
The Enforcement Directorate had sought 14 days custody of Goyal. He was taken into custody under the Prevention of Money Laundering Act (PMLA), which was registered by the CBI, following a long session of questioning at the central agency’s office in Mumbai.
Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty and unknown Public Servant(s) and Private Person(s) were named as accused in the FIR.
According to the CBI’s FIR, a complaint was submitted by the chief general manager, recovery and legal section, at Canara Bank, Bandra Kurla Complex in Mumbai, alleging criminal conspiracy, criminal breach of trust and criminal misconduct by the accused, causing the bank a wrongful loss of Rs 538.62 crore.
Following the enforcement case information report (ECIR), the ED also conducted searches in Mumbai and Delhi including those linked to the Goyals and the erstwhile auditor of the airline.
Earlier in February, the division bench of Justice Revati Mohite-Dere and Prithviraj Chavan of the Bombay High Court had quashed the ED’s money laundering case against the couple for the want of a predicate offence. The bench had however observed that if any fresh case is registered against the couple by any law enforcement agency, the ED could probe them.
According to the complaint, JIL promoted by Tail Winds Ltd, an overseas company owned by Goyal and his associates, had been dealing with Canara Bank since 2005. However, since August 2018, the company claimed it was facing liquidity and operational issues. Subsequently, SBI-led consortium decided to initiate resolution for corporate insolvency. The accounts held with Canara Bank turned NPA in June 2019.
A forensic audit conducted by EY revealed that JIL had paid ₹1,410.41 crore to related parties of total commission expenses. Also, expenses of general selling agents (GSA) were paid by JIL amounting to Rs 403.27 crore, which was not in tune with the GSA agreement.
The complaint also alleges that funds were allegedly siphoned off through Jet Lite (India) Ltd (JLL), a subsidiary, by way of making advance and investing and subsequently writing off of the same by making provision.
Funds to the tune of Rs 2,547.83 crore were allegedly transferred by JIL to JLL as loan. However, the same hasn’t been paid off, it said.
Over Rs 400 crore were allegedly siphoned off through payments made to professional and consultancy expenses.
Goyal wasn’t immediately available for comment. In the past, he has denied allegations of wrongdoing.
At least four central agencies including the ED, CBI, IT and the SFIO are probing alleged irregularities into the affairs of erstwhile airline, Jet Airways and people associated with it.
