Jet Airways founder, Naresh Goyal, has been placed under a 14-day judicial custody in relation to an alleged fraud of Rs 538 crore involving Canara Bank. This development follows Goyal’s arrest by the Enforcement Directorate (ED) on September 1. As per the reports, the ED arrested him
“under the Prevention of Money Laundering Act (PMLA) following extensive questioning at the central agency’s office.”
The 74-year-old businessman was presented in court upon the conclusion of his ED remand. As the reports state, Goyal was presented
“before the court at the conclusion of his ED remand on Thursday.”
Since the probe agency did not seek any further remand, the court decided on the judicial custody, emphasizing that
“the probe agency did not seek further remand, the court decided to place Goyal in judicial custody.”
The backdrop of this case is rooted in a money laundering investigation, which originates from an FIR filed by the Central Bureau of Investigation (CBI). The FIR implicates Jet Airways, Naresh Goyal, his wife Anita, and several former executives of the now-grounded private airline. The case is described as being
“linked to an alleged fraud amounting to Rs 538 crore at Canara Bank.”
The crux of the case revolves around an alleged fraud at Canara Bank. The bank’s complaint, which led to the FIR, states that it had sanctioned credit limits and loans amounting to Rs 848.86 crore to Jet Airways (India) Ltd. Of this amount, Rs 538.62 crore remains outstanding.
This ongoing investigation and the subsequent judicial custody of Goyal highlight the complexities surrounding corporate finance and banking in India. It underscores the importance of transparency and accountability in the business sector, especially when large sums of money and the reputation of established institutions are at stake. The case also serves as a reminder of the rigorous checks and balances in place within the Indian judicial system, ensuring that alleged malpractices are thoroughly investigated and addressed.