The Enforcement Directorate (ED) arrested Jet Airways founder Naresh Goyal on Friday in connection with an alleged bank fraud case of Rs 538 crore. Goyal was arrested after being questioned for several hours by the ED officials in Mumbai.
The case stems from a complaint filed by Canara Bank, which alleged that Jet Airways (India) Ltd (JIL) had defaulted on a loan of Rs 848.86 crore. The bank said that JIL had diverted the loan funds for other purposes, including personal expenses of Goyal and his family, and investments in his other businesses.
Naresh Goyal Charged under PMLA
The ED is investigating the case under the Prevention of Money Laundering Act (PMLA). The agency has alleged that Goyal and other accused persons used a complex web of shell companies to divert the loan funds.
Goyal is the chairman emeritus of Jet Airways. He stepped down from the airline’s board in 2019 after it was grounded due to financial difficulties.
The arrest of Goyal is a major development in the bank fraud case. It is the first time that a high-profile businessman has been arrested in connection with the case.
The arrest has also raised questions about the role of other executives of Jet Airways in the alleged fraud. The ED is likely to question other executives in the coming days.
The arrest of Goyal is a setback for Jet Airways, which is currently undergoing a financial restructuring process. The airline is hoping to resume operations soon.
The case is being closely watched by the aviation industry and the financial markets. It is also a reminder of the risks of lending to large corporations.
The ED is expected to file a charge sheet against Goyal and other accused persons in the coming weeks. The case is likely to go to trial in the next few months.
In addition to the above, here are some other details about the case:
- The ED has seized assets worth Rs 100 crore from Goyal and other accused persons.
- The ED has also issued a lookout circular against Goyal, which means that he cannot leave the country without the permission of the agency.
- Goyal has denied any wrongdoing and has said that he will cooperate with the ED’s investigation.
The arrest of Goyal is a significant development in the bank fraud case. It remains to be seen how the case will unfold in the coming weeks and months.