ED arrests Jet Airways founder Naresh Goyal in fraud case
The Enforcement Directorate arrested Jet Airways founder Naresh Goyal on Friday in the Canara Bank fraud case. In May, the Central Bureau of Investigation filed an FIR against him. It was filed based on the complaint by Canara Bank. The bank alleged it had sanctioned credit limits of Rs. 848.86cr to Jet Airways (India) Limited, but the airlines defaulted the bank of Rs. 538cr.
Will be produced before PMLA court in Mumbai
Goyal was arrested under the Prevention of Money Laundering Act (PMLA) after hours of questioning at the ED's office in Mumbai. He will be produced before a special PMLA court in Mumbai on Saturday; the ED will likely seek his custodial remand.
What is the case all about
Last November, the Canara Bank had lodged a complaint of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct against Goyal, his wife, among others. Subsequently, in May, a fraud case was registered against them by the CBI. The ED later filed a money laundering case. To recall, Jet Airways shut operations in April 2019 when its debts amounted to Rs. 8,000cr.
What does the FIR say
"As per the sample agreement of Jet Airways (India) Ltd, it was noted that the expenses of General Selling Agents (GSA) was to be borne by GSA and not by JIL." "However, it was observed that JIL has paid various expenses amounting to Rs. 403.27cr, which isn't in tune with the GSA," the complaint, which is now a part of the CBI FIR, alleged.
