ED files chargesheet against Naresh Goyal; names wife, 4 other firms

According to the bank’s complaint, Jet Airways was dealing with Canara Bank since 2005, and all exposures were under the State Bank of India-led consortium agreement.

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Goyal is currently lodged in Mumbai Central Prison, popularly known as Arthur Road jail. He was produced before the special court on Monday via video-conference. (Express Archive)

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The Enforcement Directorate (ED) on Tuesday submitted its prosecution complaint (chargesheet) against Jet Airways founder Naresh Goyal, who was arrested in September, for alleged money laundering of a loan given to the airline.

The agency is learnt to have also named Goyal’s wife Anita and four other companies in the chargesheet. The ED’s case was filed on the basis of an FIR filed by CBI in May on a complaint given by Canara Bank in November 2022, alleging that the loan amount given for operational work of the airline company was used for personal expenses. The bank’s complaint is based on a forensic audit by an external audit company for the period between 2011-2019. While the Canara Bank loan was declared a non-performing asset (NPA) in 2019, the ED claims that the loan amount to the tune of Rs 538 crore is nothing but proceeds of crime which have been diverted and siphoned off. A consortium of banks had given loans to Jet Airways (India) Ltd for its operation work.

Also Read | From rags to riches to grounding: The story of Jet Airways’s Naresh Goyal

According to the bank’s complaint, Jet Airways was dealing with Canara Bank since 2005, and all exposures were under the State Bank of India-led consortium agreement. When Goyal’s companies began defaulting on repayment of loans availed from the consortium, the bank called in a forensic auditor to scrutinise all transactions and documentations processed between April 1, 2011 and June 19, 2019.

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On the basis of the CBI FIR, an Enforcement Case Information Report was registered by the ED on May 10–2023 under the Prevention of Money Laundering Act.

Also Read | Naresh Goyal’s arrest for loan fraud ‘legal’, his ‘non-cooperation’ slowed probe’s pace: ED tells HC

Goyal is currently lodged in Mumbai Central Prison, popularly known as Arthur Road jail. He was produced before the special court on Monday via video-conference.

The ED has also claimed that Goyal had diverted company funds by appointing his family members in the company and paying salaries of a company floated by his daughter. The agency had referred to an audit report claiming that in the garb of professional and consultancy fees, dubious expenses to the tune of Rs 1,000 crore were booked, personal expenses of Goyal and his family members were booked in the company, and unaccounted transactions have been credited to overseas accounts of the promoters.

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