Bombay HC rejects ED’s plea opposing closure of cheating case against Jet Airways

The Bombay high court (HC) on Monday rejected a plea filed by the enforcement directorate (ED) for permission to intervene and oppose closure by the Mumbai Police

The Bombay high court (HC) on Monday rejected a plea filed by the enforcement directorate (ED) for permission to intervene and oppose closure by the Mumbai Police of a cheating case against Jet Airways and its directors, Naresh Goyal and his wife Anita Goyal.

The case is based on a complaint by the CEO of Akbar Travels.

A single bench of justice Revati Mohite-Dere on Monday upheld a magisterial order refusing permission to ED to intervene in the matter and oppose the closure report submitted by MRA Marg police.

ED had moved HC after the Mumbai sessions court rejected its appeal against the magistrate court order.

The case of cheating was registered with MRA Marg police station based on a complaint lodged by the chief financial officer (CFO) of Akbar Travels of India Pvt Ltd (ATIPL).

The complainant alleged that in 2018-19, ATIPL had done business of ₹900 crore with Jet Airways, of which ₹21.31 crore was yet to be paid by the airline. In addition, the complainant alleged, they also made advance air ticket bookings of ₹23.87 crore for the airline, which too was due. The complainant, thus, claimed that Jet Airways had defaulted on payment of ₹46.05 crore to the company.

The CFO further claimed that when he met the Goyals’ they assured about payment but to no avail. He also said that the Goyals’ made ATIPL do business with them despite being aware of the financial crisis.

The police, after completing the probe, had on March 9 filed a closure report claiming that they found no evidence that the complainant was cheated. The police, in its report, claimed the case was of civil nature and sought closure of the case on that ground.

ED had filed an application seeking permission of the magistrate court for intervening in the case to oppose the closure report, claiming police left out various crucial aspects in its probe and that it should be reinvestigated.

ED claimed that the police did not properly investigate facts about three meetings between the complainant’s representative and Goyal’s, wherein ATIPL was assured of payment, and also did not record a statement of Goyal about his accounts with foreign banks.

ED said police has filed the report with undue haste and claimed that during their probe, they unearthed numerous foreign bank accounts of Goyal and his wife Anita and related entities in the UAE, UK, Switzerland, Singapore, USA etc.

ED also mentioned that Anita holds eight properties outside India while the couple has around ₹180 crore in one of their several accounts outside India.

In the plea, the agency asked the court to not accept the closure report of the police and asked the court to direct the police to reinvestigate the complaint with regards to undisclosed accounts and assets of Goyal’s and his family members.