Goyal & Family Scandal: ED Exposes Rs 538 Crore Money Laundering Plot!

In a significant development, the Enforcement Directorate (ED) announced on Wednesday that it has seized assets valued at over Rs 538 crore belonging to Naresh Goyal, the prominent promoter of Jet Airways, along with his wife and son. This action is part of an ongoing money laundering investigation against Goyal, who has been in judicial custody since his arrest in September. The ED’s probe has brought to light a complex web of financial mismanagement, wherein Jet Airways allegedly diverted loans from a consortium of public sector banks led by SBI. The attached properties include 17 residential flats/bungalows and commercial premises.[1]

The ED’s investigation has targeted several entities, including Jetair Pvt Ltd, Jet Enterprises Pvt Ltd, and Jet Airways Ltd, in addition to its founder chairman Naresh Goyal, his wife Anita Goyal, and son Nivaan Goyal. The agency filed a prosecution complaint (chargesheet) on Tuesday against Goyal and these associated companies. This money laundering inquiry stemmed from an FIR filed by CBI, following a complaint by Canara Bank, Mumbai. The complaint alleged offenses of cheating and criminal conspiracy by Jet Airways’ promoter, which ultimately resulted in bad debts amounting to Rs 538.6 crore.

According to the ED, Naresh Goyal orchestrated an elaborate financial fraud, diverting the private airline’s funds through inflated sales agent commissions and significant, unexplained payouts to various professionals and consultants. Additionally, loans were granted to JetLite Ltd, a 100% subsidiary created to acquire Air Sahara. Subsequently, these loans were written off by making provisions in the balance sheets. The enforcement agency pointed out that commissions were wrongly disbursed to Jet Air Pvt Ltd and Jet Airways LLC Dubai, while operational expenses were wrongfully channeled to Jet Airways. Remarkably, these sales agent companies, beneficially owned by Naresh Goyal, ceased substantial operations after 2009. Nonetheless, payments continued under the chairman’s direction. The funds acquired through these dubious transactions were allegedly utilized by Naresh Goyal and his family for personal expenses and investments.

During the money trail probe, the ED meticulously established that these irregular commissions and operational expenses were, in fact, routed to entities beneficially owned by Naresh Goyal. Search operations conducted at premises linked to Goyal, his chartered accountants, and others yielded substantial evidence of the misappropriation of bank funds through money laundering activities.