ED tells HC: Naresh Goyal was uncooperative, slowed our probe

The money advanced to JLL, the agency claimed, was subsequently written off from the books of Jet Airways and further around ₹9.46 crore had been paid to Goyal family members and domestic help working at their residence

MUMBAI: The Enforcement Directorate (ED) has opposed the petition filed by Jet Airways founder Naresh Goyal in Bombay high court (HC) questioning his arrest in a ₹538 crore bank fraud case, contending that he was arrested because of his lack of cooperation with the investigators which in turn had slowed down the agency’s probe in the case. The ED was unable to trace the money trail.

ED tells HC: Naresh Goyal was uncooperative, slowed our probe.

The agency arrested 74-year-old Goyal on September 1 in connection with its money laundering probe into the purported bank loan fraud of ₹538 crore. ED’s money-laundering case is based upon a May 3 First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against Jet Airways (India) Limited (JIL), Goyal, his wife Anita and former company executive Gaurang Ananda Shetty and unknown public servants and private persons in connection with the alleged bank loan fraud at Canara Bank.

According to ED, Jet Airways had taken a loan from a consortium of 10 banks to meet its operational expenditure and an amount of ₹6,000 is still outstanding. “A forensic audit was done on the airlines whereby it is seen that around ₹1,152 crores had been diverted in the guise of consultancy and professional fees and ₹2,547.83 crore had been diverted to a sister concern, namely Jet Lite Limited (JLL) to clear its loan,” ED had said while seeking Goyal’s custody remand on September 2.

The money advanced to JLL, the agency claimed, was subsequently written off from the books of Jet Airways and further around ₹9.46 crore had been paid to Goyal family members and domestic help working at their residence.

Goyal has moved to the high court, questioning his arrest on various grounds, claiming that he was arrested by the agency without justifiable grounds. ED has opposed the plea, contending that his non-cooperation with their investigators showed his mala-fide intention to defraud banks. The agency claimed that he was placed under arrest as he was non-cooperative and evasive during questioning by the agency officials and it had slowed down their probe.

ED also claimed that all necessary formalities were completed as regards his arrest and the grounds of arrest were duly informed to him and his wife, Anita.

In a similar case, in January this year, the high court held that the arrest of Chanda Kochhar, former managing director and chief executive officer of ICICI Bank, and her husband Deepak Kochhar, by the Central Bureau of Investigation (CBI) was not in breach of statutory mandate and ordered their release on interim bail. The couple was arrested in connection with the ICICI Bank – Videocon Group loan fraud case.