Jet Airway's Senior Management Paid by Mosquito Coil Company - Report

The grounded airline, Jet Airways Limited”s (JIL) founder Naresh Goyal and his wife is accused of secretly assigning mosquito coils company to pay the salaries of Jet Airway”s employees in a purported money laundering attempt, charge sheet against Goyal produced by Enforcement Directorate read.

According to the Enforcement Directorate”s chargesheet, firms with botanical products, mosquito coils, chemicals and pharmaceuticals backgrounds paid senior Jet Airways (India) Ltd.”s employees which included Goyal”s wife and children. The senior management was paid Rs.40.9 crore
by a firm S A Sangani & Associates hired by Goyal.

The firm started paying its employees in April 2018, even though it was not officially incorporated until June 13, 2018. Additionally, the firm did not record any expenses to payroll in its profit and loss account. Moreover, in order to keep the salaries of senior managers confidential, Goyal hired a consultancy firm called HD Pathak and associates to process their salaries.

ED considers this to be a serious case of financial fraud given that the Goyal’s wife Anita was serving the company as vice-president while his daughter, Namrata, and son, Nivaan, were serving as managers in the customer service and cost reduction-efficiency sections, respectively.

The ED alleged that payments of Rs 279.5 crore were registered against the name of the consultancy firm as “other allowances. Jet Airways founder Naresh Goyal is currently serving judicial custody under ED despite his lawyers arguments that there are no grounds for further investigation.