The Enforcement Directorate (ED) on Friday arrested Jet Airways founder Naresh Goyal in an alleged money laundering case linked to the Rs 538-crore Canara Bank loan fraud case.
His arrest in Mumbai came after seven hours of questioning during the day.
He will be produced before the special PMLA court Saturday.
ADVERTISEMENT
In July, the ED had also searched eight locations in Mumbai and Delhi in connection with the case.
The case against Goyal is based on a May 3 case filed by the CBI in connection with the alleged loan fraud case involving Canara Bank.
Also Read | Jet Airways: Bombay High Court quashes money laundering case against Naresh Goyal, wife
The Jet Airways (India) Ltd had dealings with Canara Bank since 2005, and all exposures to the company were under a State Bank of India-led consortium arrangement.
According to the bank’s complaint, when Goyal’s companies started 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.
ADVERTISEMENT
The forensic audit report, submitted on February 10, 2021, pointed out “glaring irregularities”.
According to the CBI, the audit report found fraudulent features such as diversion and siphoning of funds by the accused companies.
Also Read | Jet Airways case: Bombay HC asks ED why ECIR against Naresh Goyal, wife can’t be quashed
The alleged diversion and siphoning of funds were related to commission expenses and personal expenses such as salaries of staff, phone expenses, vehicle expenses of the Goyal family paid by Jet Airways (India) Ltd.
ADVERTISEMENT
The forensic audit also revealed siphoning of funds through Jet Lite (India) Ltd via advance and investing and subsequently writing it off by making provisions. The company allegedly diverted funds for making transfers to the subsidiary Jet Lite (India) Ltd in the form of loans and advances and investments extended to the company.
“All the transactions point towards cheating and misappropriation of funds by the borrower and siphoning of funds borrowed from banks being utilised for purposes unrelated to the operations of borrower…,” the CBI stated in the FIR.