Naresh Goyal's Stunning Downfall: Jet Airways Honcho Held In High-Profile Loan Fraud Case

The Arrest and Court Ruling : Judicial Custody

Metropolitan Special PMLA Court has sent Jet Airways’ founder, Naresh Goyal, aged 74, to Arthur Road Jail for a 14-day judicial custody period. This comes after Goyal was arrested on September 1 by the Enforcement Directorate (ED) in connection with an INR 538 crore loan fraud case allegedly involving him and others with Jet Airways, who stand accused of defrauding Canara Bank.

The Lone Fraud Case

The ED had carried out a detailed investigation into a substantial loan taken by Jet Airways for operational expenses. This loan was from a consortium of 10 banks and spanned the period from 2011-12 till 2018-19. Despite various attempts to repay the debt, Jet Airways still owes approximately INR 6,000 crore in outstanding dues.

Enforcement Directorate (ED) Finds Misappropriation of Funds

A later forensic audit by the ED revealed alarming discrepancies:

An amount of INR 1,152 crore was inaccurately listed as consultancy and professional fees
INR 2,547.83 crore was rerouted to Jet Lite Limited (JLL) in order to clear its loan, which was later written off from Jet Airways’ books
Additionally, about INR 9.46 crore was allegedly paid to Goyal’s family members and domestic help

Judicial Custody and Plea From Naresh Goyal

After his remand period under ED custody ended, Goyal was presented in the special PMLA court, where the agency sought his remand to judicial custody leading to his transfer to Arthur Road Jail. Considering his age and health conditions, Goyal filed pleas before the court, asking for:

Daily medical check-ups to be allowed from his family physician and other specialist doctors owing to his medical history of heart disease and a bypass surgery, along with 80% blockage in his left main artery and a diagnosis of depression
Regular communication with family members, as his wife is battling cancer

As a response to these pleas, the court asked prison authorities and the ED to reply by Monday. In the meantime, they have granted Goyal home-cooked meals in line with his dietary requirements.

Conclusion

As the details of Jet Airways’ financial misdeeds continue to unravel, Naresh Goyal finds himself awaiting further legal decisions in his cell at Arthur Road Jail.

Frequently Asked Questions (FAQs)

Who is Naresh Goyal?

Naresh Goyal is the founder of Jet Airways, a major Indian airline that has been operating since 1993.

Why was Naresh Goyal arrested?

Naresh Goyal was arrested by the Enforcement Directorate (ED) in connection with an INR 538 crore loan fraud case involving Jet Airways. He and others involved with the company are accused of defrauding Canara Bank.

What are the claims made by the Enforcement Directorate (ED)?

The ED claims that Jet Airways took a substantial loan for operational expenses between 2011 and 2019 from a consortium of ten banks. According to a forensic audit, large sums of this loan were misappropriated and listed inaccurately. The remaining outstanding loan is still approximately INR 6,000 crore.

What was the outcome of the court ruling?

After his remand period under ED custody ended, Goyal was sent to Arthur Road Jail per the Metropolitan Special PMLA Court’s ruling. He has been remanded in judicial custody for 14 days.

Why has Goyal reached out to the court for medical assistance?

At the age of 74, and with a history of heart disease including a bypass operation, Goyal has cited significant health concerns. He also mentioned his diagnosis of depression and 80% blockage in his left main artery, leading him to request daily medical check-ups from his family doctor and specialists.

What is the current status of Naresh Goyal?

Naresh Goyal is currently under a 14-day judicial custody at Arthur Road Jail, awaiting prison authorities’ and the ED’s responses to his pleas, which have been directed by the court.