In a significant development, the Enforcement Directorate (ED) has apprehended Naresh Goyal, the founder of Jet Airways, after an extensive interrogation related to alleged money laundering activities involving a credit facility of ₹538 crore obtained from Canara Bank. This arrest comes at a crucial juncture when a consortium was actively investing to restore the grounded airline’s airworthiness.
ED Takes Action
Following a day-long questioning session, the ED took Naresh Goyal into custody. This move underscores the seriousness of the allegations and the ED’s commitment to investigating financial irregularities.
Legal Proceedings to Follow
Naresh Goyal is scheduled to appear before a Special Prevention of Money Laundering Act (PMLA) court in Mumbai on the upcoming Saturday. During this appearance, the ED is expected to seek his custody for further questioning and investigation.
Origins of the Investigation
The ED’s inquiry into Naresh Goyal’s financial transactions stems from an FIR initially filed by the Central Bureau of Investigation (CBI). The FIR implicated not only Goyal but also his wife, Anita, and Jet Airways director, Gaurang Ananda Shetty. This legal action was prompted by a complaint from a Mumbai branch of Canara Bank, dated November 23 of the previous year.
Allegations of Diversion and Fraud
Canara Bank raised concerns regarding a credit facility totaling ₹848.86 crore extended to Jet Airways. Shockingly, it was alleged that a substantial portion of this credit, amounting to ₹538.62 crore, had been diverted to subsidiary and group companies through questionable means.
The Fraudulent Declaration
The situation took a more serious turn when the company’s account, which held the ₹538.62 crore borrowed from Canara Bank, was officially declared as fraudulent in July 2021. This declaration marked a critical juncture in the investigation and led to intensified scrutiny.
CBI’s Earlier Involvement
Prior to the ED’s actions, the CBI had conducted searches at various locations, including the premises of Jet Airways and Naresh Goyal in Mumbai. These searches were part of the CBI’s efforts to gather evidence and information related to the alleged financial misappropriations.
The arrest of Naresh Goyal sends shockwaves through the business and aviation sectors, as it raises questions about the management and financial practices within one of India’s most prominent airlines. As legal proceedings unfold, the case will undoubtedly attract significant attention and scrutiny, with potential implications for the broader financial landscape in India.
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