New Delhi: Properties worth Rs 538.05 crore of Jet Airways and the Naresh Goyal family have been attached by Enforcement Directorate (ED) under Prevention of Money Laundering Act, 2002.
Seventeen 17 residential and commercial properties – in India, London and Dubai — belonging to several companies and individuals, including Goyal, his wife Anita and son Nivaan have been attached.
“The attached properties include 17 residential flats/bungalows and commercial premises in the name of various companies and persons viz. M/s Jetair Private Limited, M/s Jet Enterprises Private Limited, founder Chairman of M/s Jet Airways (India) Limited (JIL) Naresh Goyal, his wife Mrs Anita Goyal and son Nivaan Goyal situated in London, Dubai and various states of India,” ED said in a release on Wednesday.
ED’s money-laundering probe is based on an FIR by Central Bureau of Investigation (CBI) following a complaint by Canara Bank, which accused JIL, its promoters and directors of cheating, criminal conspiracy, criminal breach of trust and criminal misconduct.
ED said its investigation has revealed JIL siphoned off loans granted by a consortium of banks led by State Bank of India and Punjab National Bank.
“Naresh Goyal implemented a massive financial fraud in which the funds of JIL were systematically diverted in the garb of irrational and inflated General Sales Agent (GSA) commissions, large unexplained payouts to various professionals and consultants, by granting of loans to JetLite Limited (100% subsidiary to acquire Air Sahara), and subsequently writing off the loans by making provisions in the balance sheets,” ED stated.
“ED investigation established that GSA commissions were wrongfully paid to Jet Air Private Limited (GSA of JIL for India), Jet Airways LLC Dubai (Global GSA of JIL) and JIL wrongfully paid for the operational expenses of these GSAs. All these GSAs were beneficially owned by Naresh Goyal. Hence, the management of JIL toed the line of Naresh Goyal, and kept on paying large sums of money on regular basis despite the fact that these entities were not performing any substantial service after 2009,” ED added.
ED, which arrested Goyal two months ago under PMLA, accused him and his family of using the funds for personal expenses and investments.
Goyal is currently in judicial custody, lodged at Mumbai’s Arthur Road jail.