The founder of Jet Airways (JAI, Mumbai International) has lost a bid to be released from custody ahead of his trial concerning fraud and breach of trust offences while he was running the airline. On November 7, 2023, the Mumbai High Court dismissed Naresh Goyal's challenge to his "illegal arrest" on September 1.
As reported by the India Express, Goyal asked the court to release him from "abjectly unlawful and arbitrary custody and incarceration." Unfortunately for him, Justices Revati Mohite-Dere and Gauri Gods declined to do so. "We are of the view that the petition seeking a writ of habeas corpus, in the facts, cannot be entertained, and as such, dismiss the petition," the judge's decision read.
Goyal was arrested in September by officers from India's financial crime agency, the Enforcement Directorate (ED), in relation to alleged offences concerning a INR5.386 billion rupee (USD64.7 million) loan provided by the Canara Bank to Jet Airways. Goyal's counsel argued that the arrest and remand processes did not follow due process.
During last week's hearing, the ED's counsel, Hiten Venegoankar, said Goyal was "highly uncooperative, recalcitrant, evasive, and suspicious in his statements and conduct" during the long-running investigation, necessitating his arrest and remand. Goyal has been subject to numerous ED investigations since Jet Airways collapsed in 2019. To date, he has had some success defending and disputing the matters. However, more recently, the tide has swung against him. In addition to remanding him, the ED has also seized 17 properties worth INR5.38 billion (USD64.7 million) connected to him and family members.
The ED alleges Goyal embezzled and siphoned off funds in a "piecemeal manner" from loans provided to the low-cost carrier with "a mala fide intention to defraud the banks." ch-aviation does not assert that this is true, only that the allegations are made. The ED calls Goyal a "very influential, resourceful, and intelligent man" who deliberately slowed the pace of any investigations through "elusive and misleading answers." Arguing against releasing Goyal from custody, counsel for the ED also raised the possibility of Goyal interfering with witnesses or evidence.
Goyal remains in custody in a Mumbai prison. After Jet Airways collapsed, it entered into the insolvency process and was later sold to the Jalan Kalrock Consortium, an entity not associated with Goyal. The consortium is attempting to relaunch the airline but continues to experience difficulties securing the support of creditors and lenders.
