Jet Airways Founder Naresh Goyal Arrested In Rs 538 Crore Bank Fraud (Image:twitter.com/imayanktiwari)

Jet Airways founder Naresh Goyal has been arrested by the Directorate of Enforcement (ED) in Rs 539 crore money laundering case.

Mr Goyal was questioned extensively by the ED officials in Mumbai to Rs 539 crore Canara Bank loan fraud. And the questioning eventually turned up into his arrest under the Prevention of Money Laundering Act (PMLA).

The 74 year-old Mr Goyal was also accused of non-cooperation to the officials. He will be produced before a special PMLA court in Mumbai on Saturday. There, the ED will seek his custodial remand.

The current bank fraud case has its roots from an FIR (First Information Report) submitted by CBI (Central Bureau of Investigation) against the Jet Airways, Mr Goyal, his wife Anita and some former company executives.

The FIR filed by the CBI was based on the complaint from Canara Bank, that the bank has sanctioned credit limits and loans to Jet Airways (India) Ltd (JIL) to the tune of Rs 848.86 crore, of which Rs 538.62 crore is outstanding. Siphoning or illegal transfer of loan money which were taken for airline operations was also traced out.

According to CBI, the account was declared “fraud” in July 2021. The personal expenses such as salaries of staff, phone bills and vehicle expenses, among others, of the Goyal family were paid by JIL, NDTV quoted the FIR.

Jet Airways faced financial turmoil since 2018 and allegedly siphoned funds through various means. Mr Goyal has faced previous ED investigations in different cases.

Mr Goyal is a non-resident Indian businessman and founder Chairman of Jet Airways. He started operating Jet Airways in 1993 with initial seed money from Tail Winds incorporated, Isle of Man. Tail Winds which is 100% owned by Goyal is registered in Isle of Man and holds 6.90 crore shares in Jet Airways.

Mr Goyal stepped down from the Board of Jet Airways along with his wife in March 2019 amid the financial crisis.