Mumbai:

A special PMLA court in Mumbai has allowed Jet Airways founder Naresh Goyal, an accused in an alleged fraud of Rs 538 crore at the Canara Bank, to have home-cooked food inside prison.

Naresh Goyal’s plea for home-cooked food was allowed by special judge for cases under the Prevention of Money Laundering Act (PMLA) MG Deshpande on Tuesday.

“Naresh Goyal is permitted to avail home cooked food on a daily basis, as prayed, at his own risk and the risk of his family/relatives, until further order,” the court said.

Naresh Goyal is currently in judicial custody and lodged at Arthur Road jail in south Mumbai in a money laundering case linked to an alleged fraud at the Canara Bank.

Earlier, his lawyers had moved an application for home-cooked food along with a chart on Naresh Goyal’s health issues that they claimed had cropped up during his judicial custody.

The Enforcement Directorate (ED) arrested Naresh Goyal on September 1 under the PMLA following a long session of questioning at the central agency’s office here.

The money laundering case stems from an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Naresh Goyal, his wife Anita, and some former company executives of the now-grounded private airline in connection with an alleged Rs 538-crore fraud at the Canara Bank.

The FIR was registered on the bank’s complaint which alleged that it sanctioned credit and loans of Rs 848.86 crore to Jet Airways (India) Limited of which Rs 538.62 crore was outstanding.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Mumbai:

Jet Airways founder Naresh Goyal has been sent to 10 days of Enforcement Directorate custody by a special PMLA court here. The ED had sought 14 days of custody from the court.

“ED has arrested Naresh Goyal, ex-Chairman of Jet Airways (I) Ltd. on 1.09.2023 under the provisions of PMLA, 2002 in Rs 538 Crore Canara bank fraud case. He was produced before the Hon’ble PMLA Special Court, Mumbai, and the Hon’ble Court has granted ED custody for 10 days,” the ED posted in a message on X.

In the PMLA court here on Saturday, Naresh Goyal’s lawyer pleaded that since Goyal is not keeping well and has back and spine problems, he should be allowed to have his medicines, a bed and home-cooked food while in ED custody to which the court obliged.

ED arrested Naresh Goyal for allegedly defrauding Canara Bank of Rs 538 crore based on an FIR registered by the Central Bureau of Investigation (CBI) earlier in May this year.

Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty and unknown Public Servant(s) and Private Person(s) were named as accused in the FIR.

“CGM of Canara Bank, Recovery & Legal Section in Mumbai, has submitted regarding alleged offences of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct committed by M/s Jet Airways (India) Ltd., Naresh Jagdishrai Goyal, Anita Naresh Goyal, Gaurang Ananda Shetty and unknown public servants and others causing wrongful loss of Rs 538.62 crores to Canara Bank,” the FIR read.

“Forensic Audit conducted in the accounts of Jet Airways (India) Ltd revealed fraudulent features like diversion and siphoning of funds,” it further read.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

File photo of Naresh Goyal.
| Photo Credit: PTI

The Enforcement Directorate on September 1 arrested Jet Airways (India) Limited’s founder chairman Naresh Jagdishrai Goyal, in connection with an alleged loan fraud involving about ₹538.62 crore of the Canara Bank.

Mr. Goyal had been summoned to the ED’s Mumbai office for recording his statement. He was arrested following questioning.

The ED probe is based on a case registered by the Central Bureau of Investigation (CBI) in May last year. Among those named as accused were the company, Mr. Goyal, his wife Anita Naresh Goyal and Gaurang Ananda Shetty.

As alleged, the company was initially sanctioned a working capital limit of ₹126 crore and inland letter of credit/financial bank guarantee limit of ₹100 crore for different purposes. It also received ₹400 crore as term loan for operational expenditures and ₹200 crore for aircraft reconfiguration, introduction of new routes, business promotion and other associated activities, besides ₹17.52 crore as short-term loan.

The First Information Report alleged that since August 2018, the company started claiming that it had been facing liquidity and operational issues, and was not able to service the payment or repayment obligations. In October 2018, the lenders decided to invoke the inter-creditor agreement provisions and the State Bank of India was appointed the leader.

Jet Airways was told to submit a resolution plan and infuse $3,500-Rs.4000 crore. However, the conditions were not fulfilled and the company also defaulted on payment of instalments as on December 31, 2018. The banks then took the matter to the National Company Law Tribunal. In April 2019, Jet Airways had suspended its operations.

The Canara Bank said its loan account turned a non-performing asset on June 5, 2019. A forensic audit of the company’s financials during the check period from April 1, 2011 to June 30, 2019, subsequently detected alleged diversion and siphoning of funds.

As alleged, related parties were paid ₹1,410.41 crore out of the total commission expenses; and there was siphoning of funds through Jet Lite (India) Ltd. through advances or investments and then, the same written off. During 2011-18, ₹14,552.44 crore was extended as loan to Jet Lite and ₹13,529.62 crore was received in return, it was alleged.

The bank also alleged that Jet Airways was transferring borrowed funds to subsidiary/group entities through various ways. During the review period, ₹1152.62 crore was paid for professional and consultancy services. Of these, alleged suspicious transactions worth ₹197.57 crore were detected in case of the linked entities.

Over ₹420 crore was paid to the entities whose nature of business was different from the service description in their invoices raised on the company, as alleged.