Jet Airways Founder Naresh Goyal and Family Face Asset Attachment of Rs 538 Crore in Money Laundering Case

The ED released a statement, indicating that properties worth Rs 538.05 crore have been attached under the provisions of the Prevention of Money Laundering Act, 2002, as part of their investigation into money laundering related to Jet Airways (India) Ltd (JIL).

In a significant development, the Enforcement Directorate (ED) announced on Wednesday that it has seized assets valued at Rs 538 crore belonging to the former Jet Airways founder and Chairman, Naresh Goyal, along with his wife Anita Goyal and son Nivaan Goyal. These assets are located in London, Dubai, various states in India, and several other companies, all in connection to a bank fraud and money laundering case.

This action follows the ED's recent filing of a charge sheet in a Rs 538 crore fraud case involving Canara Bank, which named the Goyal couple and four other companies.

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The ED released a statement, indicating that properties worth Rs 538.05 crore have been attached under the provisions of the Prevention of Money Laundering Act, 2002, as part of their investigation into money laundering related to Jet Airways (India) Ltd (JIL).

The attached properties comprise 17 residential flats and bungalows, as well as commercial premises registered under various companies and individuals, including Jetair Private Ltd, Jet Enterprises Private Ltd, Naresh Goyal (Founder Chairman of Jet Airways (India) Ltd), his wife Anita Goyal, and their son Nivaan Goyal, spread across London, Dubai, and various Indian states.
The ED's investigation exposed that JIL diverted loans from a consortium of banks led by SBI and PNB.

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According to the agency, Naresh Goyal orchestrated an extensive financial fraud, wherein JIL's funds were channeled deceptively through inflated General Sales Agent (GSA) commissions, substantial payments to professionals and consultants, granting loans to JetLite Ltd (a 100% subsidiary to acquire Air Sahara), and subsequently writing off these loans through provisions in the balance sheets.

The ED alleged that GSA commissions were wrongfully disbursed to Jet Air Private Ltd (GSA of JIL for India), Jet Airways LLC Dubai (Global GSA of JIL), and JIL wrongfully covered operational expenses for these GSAs.

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All of these GSAs were beneficially owned by Naresh Goyal, which is why JIL continued to make substantial payments despite their lack of substantial services after 2009. The received funds were subsequently utilized for the personal expenses and investments of Naresh Goyal and his family, as per the ED.

Earlier, the ED had conducted searches and surveys at properties associated with Goyal, as well as the chartered accountants of JIL and other relevant individuals.

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Notably, Naresh Goyal was arrested on September 1 and is currently in judicial custody. The ED had filed a charge sheet before the Special Court (PMLA) on October 31, based on an FIR filed by CBI, BS&FB, Delhi, stemming from a written complaint by Canara Bank, Mumbai. The complaint alleged offenses of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct by JIL and its promoter and directors, resulting in a substantial NPA of Rs 538.62 crore.

(With Agency inputs)

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Also Read | Getting weaker by the day in jail, Naresh Goyal tells Mumbai court

Also Read | It appears that Jet Airways founder Naresh Goyal was evasive: Mumbai court

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