HC judge recuses from hearing ED’s plea against Naresh Goyal

The judge said on Monday that he could not hear the matter as he had earlier appeared as a special public prosecutor in proceedings related to the Jet Airways founder

MUMBAI: A single-judge bench of justice Shreeram Shirsat has recused itself from hearing a petition filed by the Enforcement Directorate (ED) in the Bombay High Court challenging a lower court’s order permitting Jet Airways founder Naresh Goyal to travel to London for four weeks to seek expert medical opinion for serious ailments, including cancer. The judge said on Monday that he could not hear the matter as he had earlier appeared as a special public prosecutor in proceedings related to Goyal.

The Enforcement Directorate is investigating Jet Airways founder Naresh Goyal in a ₹539-crore financial fraud case. (HT Archives)

A special Prevention of Money Laundering Act (PMLA) court had, on May 12, permitted Goyal to travel to London for four weeks, on the condition that he strictly comply with the itinerary and provide guarantees to the court that he would return to India. Special PMLA judge RB Rote had noted that the right to travel for a person suffering from various ailments is a basic human right.

The ED, which is investigating Goyal in an ongoing ₹539-crore financial fraud case, had opposed the plea in the high court on May 22, citing the 76-year-old as a flight risk. In its plea, filed through advocate Ashish Mehta, the ED also claimed that Goyal possesses two passports and that he had kept the information from the agency and the court.

However, in May 2024, the high court granted Goyal interim medical bail after he was required to undergo surgery. Later, in November 2024, he was granted permanent medical bail after his condition became critical.

Goyal is facing criminal cases for allegedly cheating several public sector banks of crores of rupees. In July 2023, following raids, the ED arrested him as part of its money-laundering investigation related to an alleged bank fraud of ₹538.62 crore.

The raids were conducted after Canara Bank filed a complaint against Jet Airways, Goyal, his wife Anita, former company executive G Shetty, and other unidentified public servants. According to an FIR registered by the Central Bureau of Investigation (CBI), Canara Bank alleged that it had sanctioned credit limits and loans worth ₹848.86 crore to the airline, of which ₹538.62 crore had not been returned. The airline’s bank account was then declared a “fraud” in July 2021.

According to the bank, a forensic audit of the airline’s finances showed that it had diverted and siphoned off funds and even paid “related companies” ₹1,410.41 crore out of the total commission expenses. The bank claimed that the airline diverted the funds through a related company, Jet Lite (India) Limited, and also paid for the Goyal family’s personal expenses.