In the money laundering probe against M/s Jet Airways (India) Limited (JIL), the Directorate of Enforcement (ED) has temporarily attached properties worth Rs 538.05 crore under the terms of the Prevention of Money Laundering Act (PMLA) 2002.
The attached properties include 17 residential flats/bungalows and commercial premises in the names of various companies and individuals, including M/s Jetair Private Limited, M/s Jet Enterprises Private Limited, Naresh Goyal, founder Chairman of M/s Jet Airways (India) Limited (JIL), his wife Mrs Anita Goyal, and son Nivaan Goyal, located in London, Dubai, and various Indian states.
The ED launched an investigation based on an FIR registered by the CBI, BS&FB, Delhi, in response to a written complaint submitted by Canara Bank, Mumbai, alleging cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct committed by M/s JIL and its promoters and directors, resulting in a massive NPA of Rs. 538.62 Crore.
An ED probe indicated that JIL stole loans from a consortium of banks led by SBI and PNB. Naresh Goyal perpetrated a massive financial fraud in which JIL funds were systematically diverted under the guise of irrational and inflated General Sales Agent (GSA) commissions, large unexplained payouts to various professionals and consultants, and by granting loans to JetLite Limited (100% subsidiary to acquire Air Sahara) and then writing off the loans through provisions in the balance sheets.
GSA commissions were unjustly paid to Jet Air Private Limited (GSA of JIL for India), Jet Airways LLC Dubai (Global GSA of JIL), and JIL wrongfully paid for these GSAs’ operational expenditures, according to an ED probe. Naresh Goyal beneficially owned all of these GSAs. As a result, JIL’s management followed Naresh Goyal’s lead and continued to pay enormous quantities of money on a monthly basis, despite the fact that these firms were not rendering any significant service after 2009. Naresh Goyal and his family used the money obtained for personal purposes and investments.
Previously, the ED had conducted searches and surveys at the homes of Naresh Goyal, Chartered Accountants of JIL, and others. Naresh Goyal was detained by the ED on 1.9.2023 and is currently in Judicial Custody. On October 31, 2023, the ED filed a prosecution case with the Hon’ble Special Court (PMLA). More research is being conducted.
