Canara Bank fraud case: ED summons UAE-based ex-promoter of Jet Airways

The ED case against Goyal and others was filed on the basis of a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in May on a complaint by the Canara Bank in November 2022, alleging that the loan given for operational work of the airline was used for personal expenses. The bank’s complaint was based on a forensic audit by an external audit company for 2011–2019.

While the Canara Bank loan was declared a non-performing asset in 2019, the ED claims that the loan to the tune of Rs 538 crore was nothing but proceeds of crime that were diverted and siphoned off. The ED claims this was done on the pretext of paying professional and consulting expenses to various entities.

According to a source, Goyal named Gardi saying he had given the power of attorney to him long ago, and he is the beneficiary of both movable and immovable assets, along with various agreements and trusts, both in India and abroad.

It is also alleged that the Goyal family bought furniture and jewellery using company funds and funds from Gardi. “Anita Goyal made five remittances totalling USD 1,480,000 to Raj Overseas Pte Ltd., Singapore, for the purpose of ‘purchase of jewellery’ …certain email communications that indicated that payments were made by Gardi for certain movable assets purchased for Naresh Goyal and Anita Goyal in the nature of furniture accessories, apparel, and jewellery. Evidently, the funds have been diverted from the company for his personal use,” an ED report said.

According to ED, Gardi is also a major shareholder in Jet Airways LLC, with a 34 per cent stake compared to Goyal’s 15 per cent. Jet Airways LLC is a 100 per cent shareholder of Jet Airways of India Inc. Similarly, Gardi is a director at Tail Winds India Ltd., which owns 89 per cent of JIL, while Goyal has a 51 per cent stake. Gardi and Goyal are also joint shareholders in Jet Enterprises Pvt Ltd. A bank account in the name of Dunbridge Business Development Inc. has Gardi as the authorised signatory and Goyal as the beneficiary, according to ED.

Gardi was also summoned by the ED in a FEMA case, but he never appeared before the agency.

In the current case, ED arrested Goyal on September 1, claiming that he had siphoned off the bank loan and diverted company funds by appointing his family members in the company and paying the salaries of a company floated by his daughter.