Jet Airways founder Naresh Goyal arrested in alleged bank fraud case

The Enforcement Directorate (ED) has arrested Jet Airways founder Naresh Goyal in an alleged Rs 538 crore money laundering case involving Canara Bank.

Goyal was arrested under the Prevention of Money Laundering Act (PMLA) after a lengthy interrogation at the ED's Mumbai headquarters.

On Saturday, Goyal, 74, will appear before a special PMLA court in Mumbai, when the ED will seek his detention in custody.

The money laundering allegation arises from a Central Bureau of Investigation (CBI) first information report (FIR) filed against Jet Airways, Mr Goyal, his wife Anita, and other former business officials in connection with an alleged Rs 538 crore fraud case at Canara Bank.

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The FIR was launched in response to the bank's complaint, which claimed it sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) totalling Rs  848.86 crore, of which Rs 538.62 crore is still owed.

According to the CBI, the account was labelled "fraud" in July 2021. The bank said that a forensic investigation of JIL revealed that it paid "related companies" Rs 1,410.41 crore out of total commission charges, syphoning revenues away from JIL.

According to the FIR, JIL funded the Goyal family's personal costs such as employee wages, phone bills, and automobile expenses, among other things.