The Enforcement Directorate (ED) has alleged that Jet Airways founder Naresh Goyal and his family members made dubious and personal expenses totaling Rs 1,000 crore using bank-loan funds. Additionally, the airline is accused of diverting money to tax havens. Goyal was arrested in a money-laundering case and taken into custody by the ED. He was later sent to the ED’s custody for 10 days.
According to the ED, the total non-performing assets of Goyal’s group, Jet Airways (India) Limited or JIL, amounted to Rs 5,951.46 crore. The State Bank of India (SBI) held the largest share of Rs 1,636.23 crore among the consortium of nine banks that had exposure to the company and its promoters.
During its investigation, the ED found that dubious expenses amounting to Rs 1,000 crore were booked as professional and consultancy fees. Personal expenses of Naresh Goyal and his family members were also charged to the company. Unaccounted transactions were also credited to the foreign accounts of the promoters.
The ED alleges that JIL diverted funds to overseas entities in tax havens such as Dubai, Ireland, and the British Virgin Islands. These funds were disguised as general selling agents’ commission and were paid to related parties connected to Goyal and his associates.
Jet Airways ceased operations in April 2019 due to a lack of funds. Goyal resigned as the chairperson of the airline following this. The ED’s case against Goyal and others stems from an FIR filed by the Central Bureau of Investigation (CBI) regarding an alleged Rs 538-crore fraud case at Canara Bank.
In summary, Goyal and his family members are accused of making dubious expenses and diverting funds while running Jet Airways. The ED has taken Goyal into custody and will further investigate the money-laundering case.
