ED Attaches Rs 538cr Assets of Jet Airways Founder Naresh Goyal, His Family & Others

The Enforcement Directorate (ED) has recently attached properties worth Rs 538 crore belonging to Jet Airways founder Naresh Goyal and his family. This action is part of a money laundering investigation linked to an alleged bank loan fraud.

The Attached Properties

The attached properties include 17 residential flats, bungalows, and commercial premises. These properties are located in London, Dubai, and various cities in India. They are registered under various companies and individuals, including Jet air Private Limited and Jet Enterprises Private Limited, Goyal, his wife Anita, and son Nivaan.

The Allegations

The money laundering probe is based on a Central Bureau of Investigation (CBI) case into an alleged bank fraud where it has been alleged that JIL and its promoter and directors cheated banks, which resulted in a massive NPA (non-performing asset) of Rs.538.62 crore. According to ED, JIL siphoned off the loans from a consortium of banks led by the State Bank of India and the Punjab National Bank.

The ED has further claimed that the loan amount given for the operational work of the airline company was used for personal expenses by Naresh Goyal and his family. “Naresh Goyal implemented a massive financial fraud in which the funds of JIL were systematically diverted in the garb of irrational and inflated General Sales Agent (GSA) commissions, large unexplained payouts to various professionals and consultants, by granting loans to Jet Lite Limited (100% subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,” the ED statement read.

Conclusion

This case serves as a stark reminder of the potential pitfalls in the financial sector. It underscores the importance of stringent checks and balances to prevent such instances from recurring. As this case unfolds, it will be interesting to see what further developments arise.