ED conducts searches in probe against Jet Airways and founder Naresh Goyal

The Enforcement Directorate conducted searches at multiple locations as part of its money-laundering investigation into Jet Airways and its founder Naresh Goyal. The investigation is based on a fraud case registered by the Central Bureau of Investigation against the airline and others.

The Enforcement Directorate (ED) on Wednesday conducted searches at around eight locations, seven in Mumbai and one in Delhi, as part of its money-laundering investigation against a grounded private airline, Jet Airways, its founder Naresh Goyal and others.

Mumbai, India - 20 Mar, 2020: Former Jet Airways Chairman Naresh Goyal alongwith wife Anita Goyal at ED office regarding Jet Airways case, in Mumbai, India, on Friday, 20 Mar, 2020. (Photo by Bhushan Koyande/HT)

The ED’s money-laundering case is based upon a May 3 FIR registered by the Central Bureau of Investigation (CBI) against Jet Airways (India) Limited (JIL), Goyal, his wife Anita and former company executive G Shetty and unknown public servants in connection with an alleged ₹538.62-crore fraud at Canara Bank. Among the premises searched was the one belonging to an alleged Goyal financial advisor, R Chaturvedi, agency sources said.

The CBI registered its case based upon a complaint in November 2022 from Canara Bank, Mumbai. The case, registered under sections of the Indian Penal Code and Prevention of Corruption Act, related to the alleged offences of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct against the accused for causing the bank a loss of ₹538.62 crore.

Canara Bank’s complaint alleged that it had sanctioned credit limits and loans to JIL) to the tune of ₹848.86 crore, of which an amount of ₹538.62 crore was outstanding. The loan account was declared an alleged fraud in July 2021.

The CBI FIR alleged that the forensic audit of the firm revealed that it had allegedly paid over ₹1,400 crore to “related companies” out of the total commission expenses, thereby diverting funds.

“As per the sample agreement of JIL, it was noted that the expenses of the General Sales Agents (GSA) were to be borne by GSA itself and not by JIL. However, it was observed that JIL has paid various expenses amounting to ₹403.27 crore, which is not in tune with the GSA,” the bank’s complaint, which is a part of the CBI FIR, alleged. It also alleged that personal expenses, including the staff salaries and phone bills of the Goyal family, were handled by the firm. It was also alleged that funds were diverted through Jet Lite (India) Limited.

In February, the Bombay high court had quashed a money-laundering case lodged by the ED against Goyal and his wife on the basis of a Mumbai police case to probe charges of cheating and forgery on a complaint from Akbar Travels. A division bench of Justices Revati Mohite Dere and Prithviraj Chavan had quashed the ECIR (Enforcement Case Information Report or the ED equivalent of an FIR) registered in February 2020 and all proceedings against the Goyals on the ground of “being illegal and contrary to law”. The court order came after the police filed a closure report, stating that they had found no substance in the complaint and the dispute seemed to be civil in nature.