ED arrests Jet Airways founder Naresh Goyal in Rs 538-cr fraud case

Naresh Goyal, the founder of Jet Airways, was arrested on Friday in connection with an alleged bank fraud of Rs 538 crore. Goyal was questioned by the Enforcement Directorate (ED) earlier in the day, but he was arrested after the agency found that he had not cooperated with the investigation. He had missed two previous summons by the ED.

The case is based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in May 2023. The FIR alleges that Goyal and others defrauded Canara Bank of Rs 538 crore by submitting false documents and inflating the costs of aircraft spares.

The ED is investigating whether Goyal and others used the proceeds of the fraud to acquire assets in India and abroad. The ED is also investigating whether Goyal and others bribed public officials to approve the fraudulent loans.

Goyal is the latest high-profile figure to be arrested in connection with a bank fraud case. In recent months, the ED has arrested several businessmen and politicians, including Nirav Modi, Mehul Choksi, and Vijay Mallya.

Jet Airways shut down in April 2019 after flying for around 25 years. The airline failed to generate funds for continuing operations and suffered heavy losses. The airline is undergoing corporate insolvency resolution proceedings since June 2019. Though, the NCLT has approved the resolution plan submitted by the consortium in June 2021, the plan is yet to be implemented.

Jet Airways has not flown since April 17, 2019.

The Jalan Kalrock Consortium (JKC), which successfully bid for Jet Airways, recently deposited ₹100 crore, moving closer to securing control of the company. With this infusion, JKC has now invested ₹250 crore in Jet Airways and is only required to fund the remaining ₹100 crore by September 30, 2023, to take control of the airline.

Also Read: Jalan Kalrock Consortium deposits ₹100 crore in Jet Airways