The Enforcement Directorate (ED) has filed a fresh money laundering case against Jet Airways founder Naresh Goyal and others, along with seizing incriminating documents in raids at nearly eight locations in Mumbai and Delhi in connection with the case, according to sources in the central agency.
The fresh case against Goyal is based on a May 3 case filed by the Central Bureau of Investigation (CBI) in its Delhi office in connection with defrauding Canara Bank to the tune of Rs 538 crore.
In May, the CBI had also searched seven locations, including the residence and office of Goyal, his wife Anita, and former airline director Gaurang Ananda Shetty in Mumbai.
ADVERTISEMENT
The Jet Airways (India) Ltd was dealing with Canara Bank since 2005, and all the exposures to the accused company are under State Bank of India (SBI)-led consortium arrangements.
As per the bank’s complaint, when Goyal’s companies started defaulting on repayment of loans availed from the consortium, the bank roped in a forensic auditor that thoroughly scrutinised all the transactions and documentations processed between April 1, 2011 and June 19, 2019. The forensic audit report was submitted on February 10, 2021 and pointed out “glaring irregularities”.
As per the complaint, the audit report found fraudulent features such as diversion and siphoning of funds by the accused companies.
The alleged diversion and siphoning of funds were related to commission expenses and personal expenses such as salaries of staff, phone expenses, vehicle expenses, etc., of Goyal family paid by Jet Airways (India) Ltd.
ADVERTISEMENT
The forensic audit also revealed siphoning of funds through Jet Lite (India) Ltd through advance and investing as well as subsequently writing off the same by making provisions. The company allegedly diverted the funds for making transfers to the subsidiary Jet Lite (India) Ltd in the form of loans and advances and investments extended to the company.
The auditor observed that transaction scrutiny revealed that the Jet Airways (India) Ltd was transferring borrowed funds to subsidiary/group companies by whatever modalities and not utilising funds for the intended purpose.
The accused also allegedly involved in siphoning of funds through payments made to professional and consultancy expenses, CBI sources said.
ADVERTISEMENT
“All the (suspicious) 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, to the detriment of the financial health of the lentity and/or the lender,” states the CBI FIR.
The accused’s account was declared as fraud and reported to the RBI on July 29, 2021, for Rs 728.66 crore for the exposure of Canara Bank and e-Syndicate Bank together, of which Rs 538.62 crore pertains to the Canara Bank and Rs 190.04 crore to the erstwhile Syndicate Bank, the FIR added.
The CBI booked Goyal and others under relevant sections of the Indian Penal Code and Prevention of Corruption Act for cheating, criminal conspiracy, criminal breach of trust by an agent person, and corruption by public servant (who could be bank officials).
The accused company was in the process of revival after Jalan Kalrock Consortium won the bid for Jet Airways under the insolvency resolution process at the National Company Law Tribunal (NCLT).
In February this year, the Bombay High Court had quashed and set aside the old money laundering case lodged by ED against Goyal and his wife Anita Goyal. It also quashed all pending proceedings and actions arising from the case against the Goyals.
ADVERTISEMENT
While the CBI is looking into the criminal aspect of the case, the ED would focus on the money laundering aspect.