The Enforcement Directorate has provisionally attached assets worth ₹538.05 crore in connection with the money laundering probe against Jet Airways (India) Limited (JIL).
The attached properties include 17 residential flats, bungalows and commercial premises in the name of various companies and persons, including Jetair Private Limited, Jet Enterprises Private Limited, JIL’s founder chairman Naresh Goyal, his wife Anita Goyal and son Nivaan Goyal. They are located in London, Dubai and various States in India.
The ED probe is based on a First Information Report registered by the Central Bureau of Investigation (CBI) following a complaint submitted by Canara Bank. The bank alleged cheating, criminal conspiracy, criminal breach of trust and criminal misconduct committed by JIL and its promoter and directors, which resulted in the loss of ₹538.62 crore.
According to the ED, it found that JIL siphoned off the loans from the consortium of banks led by the State Bank of India and the Punjab National Bank. Mr. Naresh Goyal allegedly indulged in a “massive financial fraud” in which the funds were systematically diverted in the garb of irrational and inflated General Sales Agent (GSA) commissions and large unexplained payouts to various professionals and consultants.
Loans were granting to JetLite Limited, a 100% subsidiary, to acquire Air Sahara and subsequently written off by making provisions in the balance sheets, as alleged.
“The 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,” said the agency through a statement on Wednesday.
It said: “Hence, the management of JIL toed the line of Naresh Goyal, and kept on paying large sums of money on a regular basis despite the fact that these entities were not performing any substantial service after 2009. The funds so received were again used by Naresh Goyal and his family for their personal expenses and investments.”
The ED had earlier conducted searches and survey on the premises of Mr. Naresh Goyal, Chartered Accountants of JIL and others. It arrested him on September 1 and he is currently in judicial custody. The agency has also filed a prosecution complaint on October 31.
