ED attaches Goyal’s London, Dubai assets in bank loan fraud case
The Enforcement Directorate (ED) on Wednesday said it has attached in London, Dubai, and India assets worth Rs.538 crore of Jet Airways founder Naresh Goyal, his family members, and companies as part of a money laundering investigation linked to bank loan fraud. The attached properties include 17 residential flats, bungalows, and commercial premises.
Located in London, Dubai, and various cities in India, these properties are in the name of various companies like Jetair Private Limited and Jet Enterprises Private Limited, Goyal, his wife Anita, and son Nivaan, said ED, adding that total value of these assets is Rs.538.05 crore. Goyal, 74, was arrested by the ED on September 1 and the agency filed a charge sheet against him on Tuesday before a special Prevention of Money Laundering Act (PMLA) court in Mumbai. He is in judicial custody and lodged in Mumbai’s Arthur Road jail.
ED also published photos of the attached properties of Naresh Goyal and family at various places.
ED has provisionally attached properties worth Rs 538.05 Crore under the provisions of PMLA, 2002 in the money laundering investigation against M/s Jet Airways (India) Limited (JIL). The attached properties include 17 residential flats/bungalows and commercial premises in the… pic.twitter.com/jJAOTaYG3o
— ED (@dir_ed) November 1, 2023
Jet Airways, a full-service carrier, shut its operations in April 2019 after running out of cash. Later, Goyal stepped down as the chairperson of the airline. The money laundering case against Goyal stems from a Central Bureau of Investigation (CBI) FIR that was registered based on a complaint by Canara Bank, Mumbai. According to the bank’s complaint, JIL, its promoters, and directors committed offences of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct, resulting in a “massive” NPA (non-performing asset) of Rs.538.62 crore, the ED said.
“JIL siphoned off the loans from a consortium of banks led by SBI and PNB, and 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 percent subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,” the agency alleged.
GSA commissions were “wrongfully” paid to Jet Air Private Limited (GSA of JIL for India) and Jet Airways LLC Dubai (Global GSA of JIL). JIL also “wrongfully” paid for the operational expenses of these GSAs, it said. All these GSAs were “beneficially owned” by Goyal, the ED said.
Hence, it added, that the JIL management toed the line of Goyal and kept on paying large sums of money regularly even though these entities were not performing any substantial service after 2009. The funds so received were again used by Goyal and his family for their personal expenses and investments, the ED said.
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A man of no authenticated business background invested billions to get name & fame of Jet Airways funded by Porkistan agents operating from UAE, smuggling gold, black money of Khangress, till some disagreement somewhere lead to its own downfall, which cannot be explained for an airways with good reputation & high sales volume, to go down suddenly but for sone investor has withdrew their funds, spoiling the basket. Goyal has no recorded history of success expect his “Dubai connection”
The wonderful justice system will ensure that the man will come out on bail and die a natural death while on bail, because discussions, observation, comments take priority over dispensing justice. It would be an interesting study to know, how many people are likely to die a natural death while on bail and why, while how many are bound to die without bail and also why.