Money laundering case: HC grants interim medical bail to Jet Airways founder Naresh Goyal

MUMBAI: The Bombay high court (HC) on Monday granted medical bail for two months to Jet Airways founder Naresh Goyal, who was arrested by the Enforcement Directorate (ED) in connection with a money laundering case stemming from a ₹538.62 crore loan default.

A single judge bench of justice NJ Jamadar granted temporary bail to 75-year-old Goyal, who is undergoing treatment for cancer at HN Reliance Foundation Hospital in Girgaon upon furnishing a personal bond of ₹1 lakh and one or two sureties in the same amount.

Goyal approached the high court, after his plea for bail on medical grounds was rejected by the special PMLA (Prevention of Money Laundering Act) court on April 10, 2024.

Earlier this year, Goyal was permitted by the special PMLA court to consult private doctors for a medical assessment. His subsequent medical reports revealed malignant tumours, prompting him to request interim medical bail. The special court allowed Goyal to be admitted to a private hospital for two months for cancer treatment based on these reports but rejected his plea for bail on medical grounds.

His plea emphasised his role as the primary caregiver for his wife and stressed the importance of their mutual support during their health battles. Additionally, he highlighted the necessity of exploring alternative treatments, which he cannot adequately pursue while confined to the hospital and the need for a clean, sterile environment, especially during and after chemotherapy, which would not be feasible in a jail setting in his earlier bail plea.

Senior advocate Harish Salve, representing Goyal, had informed the High Court that besides battling cancer himself, Goyal’s wife was also critically ill with the same affliction and appealed for bail under Article 21 of the Constitution, citing humanitarian grounds, to allow Goyal to be with his ailing wife.

Salve further emphasised the urgency due to Goyal’s deteriorating health condition, Goyal was battling cancer and currently receiving treatment at a private hospital of his choice. The ED had, on the other hand, urged the court to wait for the latest medical reports before proceeding with the matter.

Goyal, who was arrested by the ED in September 2023, faces allegations of money laundering and misappropriation of loans amounting to ₹538.62 crore provided to Jet Airways by Canara Bank.

The ED’s case against Goyal is based on a May 3 FIR registered by the Central Bureau of Investigation (CBI) against Jet Airways (India) Ltd, Goyal, his wife Anita and former company executive Gaurang Ananda Shetty and unknown public servants and private persons.

According to the ED, Jet Airways had taken a loan from a consortium of 10 banks to meet its operational expenditure and an amount of ₹6,000 crore was still outstanding. “A forensic audit was done on the airlines whereby it was 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, to clear its loan,” the ED said.