₹538-crore loan fraud case: Jet Airways founder Naresh Goyal sent to Arthur Road jail

Goyal was produced before the special PMLA court on Thursday morning after his ED custody remand ended. On producing him before the special court, the agency sought his judicial custody and accordingly, the special court remanded him to judicial custody

MUMBAI: The special PMLA court on Thursday remanded Naresh Goyal, founder of the grounded airline Jet Airways, in judicial custody for 14 days after which the 74-year-old was shifted to Arthur Road jail. Goyal was arrested by the Enforcement Directorate (ED) late in the night on September 1 in connection with a case registered against Jet Airways, Goyal and others for allegedly defrauding Canara Bank to the tune of ₹538 crore.

Mumbai, India - 20 Mar, 2020: Former Jet Airways Chairman Naresh Goyal alongwith wife Anita Goyal at ED office regarding Jet Airways case, in Mumbai, India, on Friday, 20 Mar, 2020. (Photo by Bhushan Koyande/HT)

Goyal was produced before the special PMLA court on Thursday morning after his ED custody remand ended. On producing him before the special court, the agency sought his judicial custody and accordingly, the special court remanded him to judicial custody.

After the court remanded him in judicial custody, Goyal filed several pleas, urging the court that his family physician, regular medical consultant, personnel specialist doctor should be allowed to conduct his medical check-up on a daily basis.

He said on September 13, he was taken to JJ Hospital after he felt uneasiness and dizziness. After diagnosis, the doctors informed him that his heart rate was very low and in view of this history of heart disease and bypass surgery conducted in the past, the 74-year-old was prone to cardiac arrest. Besides, he claimed that he has 80% blockage in his left main artery and since he was also being treated for depression, he required regular medical attention.

Goyal also sought to allow him to meet his family members or call them for an hour every day on the grounds that his wife was suffering from cancer.

The court has asked the prison authorities and ED to submit its reply to his pleas by Monday and in the meanwhile allowed him to have home-cooked food as per dietary prescription.

Goyal, 74, has been arrested by the agency in connection with the money laundering probe into the allegation that he and the airline had defrauded Canara Bank to the tune of ₹538 crore.

The ED has also contended that Jet Airways had taken a loan from a consortium of 10 banks to meet the operational expenditure between 2011-12 and 2018-19. However, out of the total loan ₹6,000 is still outstanding. The agency said a forensic audit revealed that ₹1,152 crores were diverted in the guise of consultancy and professional fees and ₹2,547.83 crore were diverted to a sister concern - Jet Lite Limited (JLL) to clear its loan. The money advanced to JLL was subsequently written off from the books of Jet Airways. Further, the ED said, around ₹9.46 crore had been paid to family members and domestic help working at Goyal’s residence.