Naresh Goyal Founder of Jet Airways Sent To Judicial Custody in 538 Crore Loan Fraud Case


Naresh Ghoyal, founder of Jet Airways once renowned, found himself in the middle of a storm of controversy. The Enforcement Directorate (ED), which arrested him, has uncovered allegations of financial misconduct involving the renowned airline.

Chronology leading to Goyal’s arrest

On September 1, the Enforcement Directorate arrested Naresh Ghoyal. The arrest was attributed to an investigation into money laundering involving a alleged fraud amounting to Rs 538 crore committed against Canara Bank.

14 September: Goyal appeared before a special court for the Prevention of Money Laundering Act. The court then ordered a 14-day judicial custodial period, and he was transferred to the Arthur Road Jail.

Goyal’s Health Concerns and Pleas

Goyal’s health has become a major concern during the legal proceedings. Medical practitioners at JJ Hospital noticed a low heart rate after an episode of nausea and dizziness on September 13. Goyal had a history of heart problems and previous bypass surgery.

Goyal also emphasized a 80% blockage of a vital artery and ongoing depression treatment. He then requested daily medical assessments by his own healthcare team. In addition, he requested daily family communication privileges, in light of his wife’s cancer diagnosis. The court allowed him to eat home-cooked meals while waiting for further decisions.

Digging Deep into the Alleged Jet Airways Fraud

Jet Airways has been accused of substantial financial irregularities.

  1. Loans from a Consortium of Banks: Jet Airways secured loans between 2011 and 2019 to cover operational costs. A whopping Rs6,000 billion remains unpaid despite these funds.
  2. Suspicious Financial Activities: ED investigations have revealed suspicious financial activities. A staggering Rs 1,152 crore originally intended for professional and consultancy fees was diverted. A related entity, Jet Lite Limited, received Rs2,547.83 billion, another substantial amount. Jet Airways eventually removed this amount from its books.
  3. Payments made to personal associates: This is a further source of concern, as around Rs9.46 lakh was allegedly paid to Goyal’s domestic staff members and family.

Unraveling a Legacy

The aviation industry, as well as the public at large, are eagerly awaiting more clarity. The allegations made against Goyal, and Jet Airways, a once-dominant aviation company, serve as a stark warning of the complexities of corporate finance, and the possible ramifications unethical business practices. The hope for a fair and transparent resolution of this high-profile matter remains as more details emerge.


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