Jet Airways founder Naresh Goyal sentenced to 538-crore loan fraud case

Mumbai, India - 20 March, 2020: Former Jet Airways Chairman Naresh Goyal and wife Anita Goyal arrive at the ED office in Mumbai, India, on Friday, 20 March, 2020. (Photo courtesy of Bhushan Koyande/HT)

MUMBAI: A special PMLA court put Naresh Goyal, the founder of the grounded airline Jet Airways, in judicial custody for 14 days on Thursday, following which he was sent to Arthur Road jail. The Enforcement Directorate (ED) detained Goyal late at night on September 1 in connection with a complaint filed against Jet Airways, Goyal, and others for allegedly cheating Canara Bank to the tune of 538 crore.

After his ED prison remand expired, Goyal was brought before the special PMLA court on Thursday morning. When he was brought before the special court, the agency requested his judicial detention, and the special court granted it.

After the court remanded him in judicial custody, Goyal filed multiple petitions, requesting that his family physician, regular medical consultant, and personnel specialty doctor be permitted to conduct daily medical checks on him.

He stated that he was transported to JJ Hospital on September 13 after experiencing discomfort and dizziness. Following his diagnosis, physicians advised him that his heart rate was very low and that, given his history of heart illness and previous bypass surgery, the 74-year-old was at risk of cardiac arrest. Furthermore, he claimed that he had an 80% blockage in his left major artery and that he needed constant medical treatment because he was also being treated for depression.

Goyal also asked permission for him to meet with or phone his family members for an hour every day, citing his wife's sickness.

The court has ordered the jail officials and the ED to respond to his petitions by Monday and has permitted him to eat home-cooked meals in accordance with his nutritional prescription in the meanwhile.

The agency has detained Goyal, 74, in connection with the money laundering investigation into allegations that he and the airline defrauded the government.Canara Bank was defrauded to the tune of 538 crore.

The ED further said that Jet Airways obtained a loan from a consortium of ten banks to cover operational expenses between 2011-12 and 2018-19. However, 6,000 of the entire loan balance remains unpaid. A forensic analysis indicated that 1,152 crores were transferred under the pretence of consultation and professional fees, while 2,547.83 crore were routed to a sister business, Jet Lite Limited (JLL), to clear its debt, according to the agency. The funds advanced to JLL were later wiped off from Jet Airways' records. The ED further stated that about 9.46 crore had been paid to family members and domestic staff working at Goyal's apartment.