Naresh Goyal And Family In Deep Trouble As ED Attaches Assets Of Rs. 538 Crores In Jet Airways Probe

The Enforcement Directorate (ED) has taken action by attaching properties valued at ₹538.05 crore related to Jet Airways and the Naresh Goyal family under the Prevention of Money Laundering Act, 2002. This includes 17 residential and commercial properties owned by various companies and individuals, including Naresh Goyal, his wife Anita Goyal, and son Nivaan Goyal, located in London, Dubai, and different Indian states.

ED's release today, 1st November, stated, "The attached properties include 17 residential flats/bungalows and commercial premises in the name of various companies and persons viz. M/s Jetair Private Limited, M/s Jet Enterprises Private Limited, founder Chairman of M/s Jet Airways (India) Limited (JIL) Naresh Goyal, his wife Mrs Anita Goyal and son Nivaan Goyal situated in London, Dubai and various States of India", as quoted by HT.

The ED initiated the money laundering investigation based on an FIR filed by the Central Bureau of Investigation (CBI) following a complaint from Canara Bank, accusing JIL and its promoters of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct.

According to the ED, the investigation revealed that JIL diverted loans granted by a consortium of banks led by SBI and PNB. Naresh Goyal was accused of implementing a massive financial fraud involving funds from JIL. The funds were allegedly diverted through inflated General Sales Agent (GSA) commissions, unexplained payouts to professionals and consultants, loans to JetLite Limited, and writing off the loans by making provisions in the balance sheets.

The ED claimed that Goyal and his family used the funds for personal expenses and investments. Naresh Goyal was arrested under the PMLA on 1st September and a charge sheet was filed against him on Tuesday. He is currently in judicial custody in Mumbai.

ED's statement further read, "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 of loans to JetLite Limited (100% subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,"

Furthermore, the statement by the investigative agency also iterated, "ED investigation 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 wrongfully paid for the operational expenses of these GSAs. 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 on regular basis despite the fact that these entities were not performing any substantial service after 2009", as quoted by the same HT report.

Canara Bank alleged that it had sanctioned credit limits and loans to Jet Airways to the tune of 848.86 crore rupees, with 538.62 crore rupees outstanding. The ED further stated that Naresh Goyal had created various trusts abroad and purchased immovable properties using these trusts, both in India and overseas.

The agency also alleged that Goyal had appointed Hasmukh Gardi, a resident of the United Arab Emirates, as his power of attorney, but Gardi has not responded to the summons sent by the ED.