Home » Jet Airways Founder Naresh Goyal Sent To Judicial Custody: 538 Crore Loan Fraud Case

Jet Airways Founder Naresh Goyal Sent To Judicial Custody: 538 Crore Loan Fraud Case

Naresh Goyal, the founder of once-renowned Jet Airways, recently found himself amidst a storm of controversies. His arrest by the Enforcement Directorate (ED) has unearthed allegations of substantial financial misconduct linked to the renowned airline.

Chronology of Events Leading to Goyal’s Detention

September 1: In a surprising turn of events, the Enforcement Directorate detained Naresh Goyal, attributing the arrest to a money laundering investigation concerning an alleged fraud of ₹538 crore against Canara Bank.

September 14: Goyal was presented before the special Prevention of Money Laundering Act (PMLA) court. Following this, the court decreed a 14-day judicial custody, subsequently transferring him to the Arthur Road jail.

Goyal’s Health Concerns and Pleas

While the legal proceedings ensue, Goyal’s health became a pivotal topic of concern. After an episode of dizziness and uneasiness on September 13, medical practitioners at JJ Hospital highlighted a concerning low heart rate. Given Goyal’s history – a past bypass surgery and a known heart ailment – there were increasing worries about potential cardiac complications.

Moreover, Goyal emphasized an 80% blockage in a crucial artery, coupled with ongoing treatment for depression. This spurred him to request daily medical evaluations by his personal healthcare team. Additionally, drawing attention to his wife’s cancer diagnosis, he appealed for daily family communication privileges. In response, while awaiting further decisions, the court permitted him home-cooked meals based on his dietary requirements.

Diving Deep: The Alleged Jet Airways Fraud

The crux of Goyal’s arrest revolves around substantial financial discrepancies linked to Jet Airways:

  1. Loan from Consortium of Banks: Between 2011 and 2019, Jet Airways reportedly secured loans to cater to operational costs. Despite these funds, a whopping ₹6,000 crore remains unpaid.
  2. Questionable Financial Diversion: ED’s investigations have indicated suspicious financial activities. An alarming ₹1,152 crore, originally allocated for consultancy and professional fees, was ostensibly diverted. Another substantial sum, ₹2,547.83 crore, was redirected to Jet Lite Limited (JLL), a related entity. This amount was eventually marked off Jet Airways’ books.
  3. Payments to Personal Associates: Further raising eyebrows, around ₹9.46 crore was allegedly disbursed to Goyal’s domestic staff and close family members.

The Unraveling of a Legacy

As the legal proceedings continue, the aviation industry and the general public alike keenly await more clarity. The allegations against Goyal and Jet Airways, once an aviation giant, serves as a stark reminder of the intricate entanglements of corporate finance and the potential ramifications of unethical practices. As more details surface, the hope remains for a transparent and just resolution to this high-profile case.

About the author

Jack Reuben Fletcher

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