ED attaches assets worth ₹538 cr of Naresh Goyal, Jet Airways
The money laundering probe is based on a Central Bureau of Investigation (CBI) case into an alleged bank fraud where it has been alleged that JIL and its promoter and directors cheated banks, which resulted in a massive NPA (non-performing asset) of Rs.538.62 crore
New Delhi:
The Enforcement Directorate has attached property worth Rs.538 crore in connection with its probe into money laundering allegations against bankrupt airline Jet Airways, the agency said in a statement on Wednesday.
According to the probe agency, the attached properties include 17 residential flats, bungalows and commercial premises belonging to Naresh Goyal, founder and chairman of Jet Airways (India) Limited, his wife Anita Goyal and son Nivaan Goyal.
The properties ED said are situated in London, Dubai and various states of India, the agency said.
The agency had on Tuesday filed a charge sheet against Naresh Goyal in its probe against Jet Airways under the Prevention of Money Laundering Act. He was arrested by the ED on September 1 and he is currently in judicial custody lodged at Mumbai’s Arthur Road jail.
The money laundering probe is based on a Central Bureau of Investigation (CBI) case into an alleged bank fraud where it has been alleged that JIL and its promoter and directors cheated banks, which resulted in a massive NPA (non-performing asset) of Rs.538.62 crore.
According to ED, JIL siphoned off the loans from a consortium of banks led by the State Bank of India and the Punjab National Bank.
The ED has further claimed that the loan amount given for the operational work of the airline company was used for personal expenses by Naresh Goyal and his family.
“Naresh Goyal implemented a massive financial fraud in which the funds of JIL were systematically diverted in the garb of irrational and inflated General Sales Agent (GSA) commissions, large unexplained payouts to various professionals and consultants, by granting loans to JetLite Limited (100% subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,” the ED statement read.
The probe established that GSA commissions were wrongfully paid to Jet Air Private Limited (GSA of JIL for India), Jet Airways LLC Dubai (Global GSA of JIL) and JIL for the operational expenses of these GSAs, it said.
“All these GSAs were beneficially owned by Naresh Goyal. Hence, the management of JIL toed the line of Naresh Goyal and kept on paying large sums of money regularly even as these entities were not performing any substantial service after 2009. The funds so received were again used by Naresh Goyal and his family for their personal expenses and investments,” ED said.
Once India’s biggest private airline, Jet ceased operation in April 2019 after it ran out of cash. In 2019, Jet Airways filed for insolvency after Goyal had stepped down as the chairperson of the airline.
