India's financial crime agency, the Enforcement Directorate (ED), has accused the founder of Jet Airways (JAI, Mumbai International) of "massive financial fraud" while he was in control of the quasi-defunct airline. On November 1, 2023, the ED seized 17 residential and commercial properties in India and elsewhere worth INR5.38 billion (USD64.7 million) belonging to entities and individuals associated with Naresh Goyal.
In September, the ED arrested Goyal following a complaint by the state-owned Canara Bank earlier this year which accused Goyal of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct. The ED also alleges Jet Airways (India) Limited siphoned off loans from a consortium of banks led by the State Bank of India and Punjab National Bank. "Naresh Goyal implemented a massive financial fraud in which the funds of Jet Airways Limited were systematically diverted," an ED statement reads. "The funds received were again used by Naresh Goyal and his family for their personal expenses and investments."
The seized properties are held in the names of various companies and persons, including Jetair Private Limited, Jet Enterprises Private Limited, Naresh Goyal, his wife Anita Goyal, and son Nivaan Goyal. The properties are located in London, Dubai and various states in India.
The ED has pursued Goyal since Jet Airways ceased operations in the first half of 2019. To date, Goyal has successfully defended charges brought by the ED and disputed proceedings in court. However, rather than backing off, India-based outlets report that the agency has since "doubled down" with its investigations. Goyal has been remanded in custody since September 1, 2023, and is currently detained at Mumbai Central Prison, also known as Arthur Road Jail.
Among the details of the case leaked to media outlets, INR200 million (USD2.4 million) was diverted from a Jet Airways entity to a real estate agency in 2017 in partial payment for four apartments in an upmarket development in Mumbai for members of the Goyal family.
After its collapse, Jet Airways was put into administration and later sold to the Jalan Kalrock Consortium (JKC). While the consortium has plans to restart the airline, it is yet to do so. The Goyal family no longer has any association with Jet Airways.
