Jet Airways founder Naresh Goyal sent to ED custody till September 11

A Mumbai court has sent Jet Airways founder Naresh Goyal to Enforcement Directorate's custody till September 11. The development came less than a day after the businessman was arrested for defrauding Canara Bank of ₹538 crore.

Goyal was taken into custody on Friday under the Prevention of Money Laundering Act (PMLA) following a long session of questioning at the central agency's office. The CBI registered an FIR against the Chairman of Jet Airways, his wife and others in an alleged bank fraud of ₹538 crore on Friday. 

“ED custody is till September 11...We have taken an order from the Bombay HC that everyone should be given the opportunity on the basis of what SC has said. In our case also we have been given the opportunity to that extent, there is a stay till September 11...” said his advocate Ameet Naik.

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Earlier this week the ED had conducted multi-city raids in connection with the money laundering case against the former promoter of Jet Airways and his associates.

The bank contends that it had sanctioned credit limits and loans to Jet Airways to the tune of ₹848.86 crore, of which ₹538.62 crore is outstanding. It also claimed that JIL had diverted funds to its subsidiaries.

“CGM of Canara Bank, Recovery & Legal Section in Mumbai, has submitted regarding alleged offences of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct committed by M/s Jet Airways (India) Ltd., Naresh Jagdishrai Goyal, Anita Naresh Goyal, Gaurang Ananda Shetty and unknown public servants and others causing wrongful loss of ₹538.62 crores to Canara Bank. Forensic Audit conducted in the accounts of Jet Airways (India) Ltd revealed fraudulent features like diversion and siphoning of funds,” the FIR read.

(With inputs from agencies)