Mumbai: The Bombay High Court on Thursday quashed Bank of India’s 2021 decision to classify Jet Airways founder Naresh Goyal’s bank account as “fraud”..
Impact on Subsequent Actions
A bench of Justices Riyaz Chagla and Farhan Dubash also cancelled all actions that followed the classification, including mandatory reporting of the account’s activities to central agencies. The court’s detailed reasoning will be made available later.
Background on Naresh Goyal’s Legal Troubles
Goyal, 76, is facing several criminal cases linked to alleged cheating of public sector banks. He was arrested in July 2023 after Enforcement Directorate (ED) raids in a money-laundering probe related to loans given to Jet Airways.
Origin of the Case
The case began with a complaint by Canara Bank, which accused Jet Airways, Goyal, his wife Anita, former executive G Shetty, and others of bank fraud. According to the FIR lodged by the Central Bureau of Investigation (CBI), the bank sanctioned credit and loans worth Rs 848.86 crore, of which Rs 538.62 crore was not repaid. Based on this, the account was declared a “fraud” in July 2021.
Forensic Audit Findings
A forensic audit alleged that the airline diverted funds, including Rs1,410.41 crore paid to “related companies” as commission. The audit also claimed funds were routed through Jet Lite (India) Ltd and used to cover the Goyal family’s personal expenses, such as staff salaries, phone bills, and vehicle costs.
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Previous High Court Ruling
In February 2023, the High Court quashed an ED money-laundering case against him and his wife, which was based on a complaint by Akbar Travels.
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