Jet Airways was established in 1993 and has since become the go-to airline for premium air travel for the discerning traveller in India. Over the years, Jet Airways has operated to more than 65 destinations in India as well as around the world including Europe, Middle East, Southeast Asian and North America. The airline has its headquarter in Mumbai, its hub in Delhi, and its hub in Bengaluru, as well as its gateways in Amsterdam (France), Paris (United Kingdom), London (United Kingdom), and Abu Dhabi (United Arab Emirates).
Jet Airways operated a fleet of 124 narrow-body aircraft and 175 wide-body aircraft covering nearly 1000 domestic and cross-border routes before it ceased operations in April 2019.
New Delhi: The Enforcement Directorate (ED) has taken control of over properties worth over 500 crore rupees in a case that allegedly involves money laundering. These properties include 17 flats, a bungalow, and a commercial building, all registered in the names of Jet Airways’ founders, Naresh and Anita Goyal, and their son, Nivaan. The properties are located in London and Dubai, as well as in some states of India.
The properties were attached by the central probe agency on the grounds that they were worth at least Rs. 538 crore. This was done on the basis of PMLA 2002.
In addition to the Goyals’ premises, some immovable properties are registered in the names of the Jetair Pvt. Ltd, Jet Enterprises Pvt. Ltd and others. The Enforcement Directorate (ED) filed a chargesheet yesterday against Jet Airways founder Mr. Goyal and five other individuals in the Canara Bank fraud case.
According to the First Information Report (FIR), Canara Bank had approved credit limits and loans for the now grounded private airline of up to 848 crore rupees with an outstanding balance of 538 crore rupees. Mr. Goyal was arrested on September 1 on the basis of the Prevention of Money Laundering Act (PMLA) and is currently lodged in the Arthur Road jail in Mumbai. The ED alleged that Mr. Goyal created trusts in other countries and used the proceeds of crime to purchase immovable properties.
The Enforcement Directorate (ED) cited an audit report to claim that the loans were used to purchase furniture, apparel and jewellery in addition to properties. The ED also claimed that Mr Goyal and his family did not take loans on their own names or stood as guarantors for them.
The ED also alleged that a large portion of the bank loans granted to Mr Goyal by Jet Airways prior to 2011 were utilised to purchase Sahara Airlines. At the September 12 court hearing, Mr Goyal, who used to run one of India’s largest private airlines, claimed that the aviation sector relies on bank loans, which cannot be considered money laundering. “This is a historic moment in business, not only for Jet Airways but for other airlines that are in a state of crisis,” said Mr Goyal’s lawyer. “The aviation sector operates on bank loans, none of which can be considered money laundering,” he added.
Due to the economic downturn, he defaulted on some of his repayments, according to his lawyer. The court noted that Mr. Goyal’s statements made it clear that he did not provide information about all his bank accounts, as well as all his immovable and movable property in India and overseas.
These properties are made up of 17 flats and bungalows as well as a bunch of commercial buildings, all registered under different names, including the one owned by Jet Airways’ Founder, Naresh Goyal.