The Enforcement Directorate (ED) on Wednesday (November 1, 2023) attached the properties worth Rs. 538.05 crore (USD 6,45,97,875) linked to Jet Airways (India) Limited (JIL) and Naresh Goyal family under the Prevention of Money Laundering Act, 2002.
The agency said it seized 17 residential and commercial properties belonging to several companies and individuals which include Naresh Goyal, his wife Anita Goyal and son Nivaan Goyal.
The properties are situated in London, Dubai and India.
The agency said in its post on X: “ED has provisionally attached properties worth Rs 538.05 Crore under the provisions of PMLA, 2002 in the money laundering investigation against M/s Jet Airways (India) Limited (JIL). The attached properties include 17 residential flats/bungalows and commercial premises in the name of various companies and persons viz. M/s Jetair Private Limited, M/s Jet Enterprises Private Limited, founder Chairman of M/s Jet Airways (India) Limited (JIL) Naresh Goyal, his wife Mrs Anita Goyal and son Nivaan Goyal situated in London, Dubai and various states of India.”
ED said it initiated an investigation on the basis of FIR registered by CBI, BS&FB, Delhi on the basis of a written complaint submitted by Canara Bank, Mumbai, alleging therein offences of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct committed by JIL and its promoter and directors which resulted in a massive NPA of Rs. 538.62 crore.
“ED investigation revealed JIL siphoned off the loans from consortium of banks led by SBI and PNB. Naresh Goyal implemented a massive financial fraud in which the funds of JIL were systematically diverted in the garb of irrational & inflated General Sales Agent (GSA) commissions, large unexplained payouts to various professionals and consultants, by granting of loans to JetLite Limited (100% subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,” the agency said in a statement.
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. Hence, the management of JIL toed the line of Naresh Goyal, and kept on paying large sums of money on regular basis despite the fact that these entities were not performing any substantial service after 2009,” read the statement.
“The funds so received were again used by Naresh Goyal & his family for their personal expenses and investments,” the statement said.
Earlier, ED had conducted searches and survey at the premises linked to Naresh Goyal, Chartered Accountants of JIL and others.
“ED arrested Naresh Goyal on 1.9.2023 and he is presently in Judicial Custody. ED has filed a prosecution complaint before the Hon’ble Special Court (PMLA) on 31.10.2023,” read the statement.