Summary
- Jet Airways Founder Naresh Goyal has been arrested by India’s financial crime agency in relation to a bank fraud case involving 5.38 billion INR ($65 million).
- The alleged money laundering case stems from a criticism by the state lender Canara Bank.
- The investigation revealed that borrowed funds were transferred to overseas accounts and used for private expenses.
The alleged 5.38 billion INR ($65 million) bank fraud case against Jet Airways Founder Naresh Goyal resulted in his arrest on Friday. The Enforcement Directorate (ED), which is liable for investigating Goyal’s financial crime case, arrested the person. Mr. Goyal is to stay within the custody of India’s financial crime agency until September 11.
The case against Naresh Goyal
The Founding father of Jet Airways was taken into custody following an extended session of questioning on the ED’s office in Mumbai, India. Goyal was arrested under the Prevention of Money Laundering Act. Mr Goyal, 74, shall be taken before a special PMLA court where the ED is anticipated to hunt his custodial remand.
The cash laundering case against Mr. Goyal, his wife, and a few former company executives stems from the Central Bureau of Investigation (CBI) against Jet Airways. Goyal is accused of committing an INR 5.38 billion fraud case on the state lender Canara Bank. In accordance with the ED, the losses to the consortium of nine lenders are even higher, at roughly INR 60 billion ($720 million).
Photo: Nutkamol komolvanich | Shutterstock
The criticism from the bank suggested that the said amount is outstanding from the sanctioned credit limits and loans given to Jet Airways. The bank stated in its criticism in May that the Goyal family and the previous director of the airlines have caused wrongful loss to the bank. Because of this, a primary information report (FIR) was generated by the police and investigated by the CBI of India.
In its statement, the ED says that the airline, under the leadership of Goyal, had transferred the borrowed funds to overseas accounts in Dubai and Ireland. Furthermore, a big chunk of cash was used on Goyal’s and his family’s personal expenses. In accordance with the ED,
The ED investigation revealed that within the garb of skilled and consultancy fees, funds to the tune of 10 billion Indian rupees ($120.94 million) went towards the private expenses of Naresh Goyal and his relations.
Each Naresh Goyal and Jet Airways haven’t publicly responded to the allegations of bank fraud previously. The defendant parties haven’t commented regarding the arrest.
About Jet Airways
Jet Airways (India) Ltd was founded in April 1992 by Naresh Goyal. Based in Delhi, the airline began full-fledged operations in 1995 with domestic operations. In 2004, the airline commenced international flights before going public in 2005. The airline remained the one privately owned Indian airline until the founding of Vistara in 2015. The airline became the second-largest airline in India with a market share of over 21%.
Photo: photosounds | Shutterstock
The airline operated over 300 every day flights to 74 destinations worldwide. The airline suspended all operations in April 2019. It is anticipated to re-commence its flight operations by the tip of 2023. It is going to be the primary Indian airline to be revived after ceasing operations.
What are your thoughts on the case against the founding father of Jet Airways and the recent arrest of Naresh Goyal within the case? Tell us within the comments section.
Source: Reuters