The Enforcement Directorate (ED) conducted raids at eight locations in Mumbai and Delhi connected to the former promoter of Jet Airways, Naresh Goyal, his wife Anita, and auditors.
The probe agency registered a new money laundering case against Naresh and Anita Goyal while conducting searches in Mumbai and Delhi. The case is linked to the Goyals and the erstwhile auditor of the airline.
Quashed Case & Legal Condition for Money Laundering Investigations
In February, the Bombay High Court had quashed the ED's money laundering case against the Goyal couple, citing the lack of a predicate offence. However, the court had allowed for ED investigation if a fresh case is registered by any law enforcement agency, as a predicate offence is essential for registering a money laundering case under the Prevention of Money Laundering Act (PMLA).
The fresh money laundering case is based on a recent FIR filed by the Central Bureau of Investigation (CBI) against Naresh Goyal. The FIR, filed on the complaint of Canara Bank's chief general manager, alleges criminal conspiracy, criminal breach of trust, and criminal misconduct causing the bank a loss of ₹538.62 crore.
Allegations of Irregularities at Jet Airways
According to the complaint, Jet Airways (India) Ltd (JIL), promoted by Tail Winds Ltd owned by Naresh Goyal and associates, had been dealing with Canara Bank since 2005. Due to liquidity and operational issues, the accounts turned NPA in 2019.
A forensic audit conducted by EY revealed that JIL had paid ₹1,410.41 crore to related parties for total commission expenses. The payments made to general selling agents (GSA) amounting to ₹403.27 crore were not in line with the GSA agreement.
Alleged Funds Siphoning Through Subsidiary
The complaint alleges that funds were siphoned off through Jet Lite (India) Ltd (JLL), a subsidiary of Jet Airways, by making advances, investments, and subsequent write-offs of the same through provisions.
Funds amounting to ₹2,547.83 crore were allegedly transferred from JIL to JLL as a loan but were never repaid. Additionally, over ₹400 crore were allegedly siphoned off through payments made to professional and consultancy expenses.
Multiple Central Agencies Investigating Irregularities
At least four central agencies, including the ED, CBI, Income Tax department (IT), and the Serious Fraud Investigation Office (SFIO), are conducting separate investigations into the alleged irregularities surrounding the now defunct Jet Airways.
