The 74-year-old founder of Jet Airways, Naresh Goyal, has been detained by the Enforcement Directorate (ED) in connection with a money laundering case involving an alleged bank fraud at Canara Bank totaling Rs 538 crore. This arrest comes after a protracted round of interrogation at the central agency's headquarters.

Goyal is scheduled to make an appearance before a specialized PMLA court in Mumbai on Saturday, where the ED intends to seek his custodial remand. Jet Airways, a well-known full-service airline, ceased its operations in April 2019 due to financial constraints, eventually leading to Goyal's resignation as the airline's chairman.

An FIR filed by the Central Bureau of Investigation (CBI) against Jet Airways, Naresh Goyal, his wife Anita, and a few former business executives, all of whom are allegedly involved in the alleged Rs 538-crore scam at Canara Bank, is where the money laundering investigation first began.

Goyal and other people connected to the case were the targets of raids carried out by the Enforcement Directorate (ED) in July of this year. 

The CBI's FIR was initiated following a complaint by the bank, asserting that it had extended substantial credit limits and loans to Jet Airways (India) Ltd (JIL), totaling Rs 848.86 crore, with Rs 538.62 crore still outstanding. The account was declared fraudulent on July 29, 2021.

The bank further contended that a forensic audit of JIL revealed payments of Rs 1,410.41 crore to "related companies," suggesting that funds had been diverted from JIL. It was alleged that expenses related to General Selling Agents (GSA) should have been covered by GSA themselves, but JIL had paid expenses amounting to Rs 403.27 crore, contrary to the GSA agreement.

Additionally, the complaint claimed that personal expenses such as staff salaries, phone bills, and vehicle expenses of the Goyal family were funded by JIL. 

The forensic audit also discovered money-laundering schemes through Jet Lite (India) Ltd (JLL), including advance payments, investments, and write-offs. JIL had been using loans and investments to transfer money to JLL, its subsidiary. Significantly, a separate money laundering case against Naresh Goyal, linked to allegations of cheating and forgery filed by Mumbai-based Akbar Travels, was dismissed by the Bombay High Court. The Maharashtra Police documented a conclusion report, tracking down lacking proof to help the grievance, and showing that the debate gave off an impression of being respectful. Given that the ED case was predicated on a police FIR and was the basis for initiating a money laundering case, it was declared null and void by the high court, with a division bench deeming it "illegal and contrary to law."

This improvement connotes a huge turn in the legal procedures connected with the allegations against Naresh Goyal and Stream Aviation routes, with additional subtleties expected to arise as the case unfurls

Writer: Chintu Nath