Naresh Goyal Jet Airways Fraud: ED Provisionally Attaches Rs 538.05 Crore Worth of Jet Airways Properties
Naresh Goyal Jet Airways Fraud: Legal Ramifications: ED’s Prosecution Complaint Points to Massive Funds Misappropriation
Naresh Goyal Jet Airways Fraud: How Jet Airways and Founder Naresh Goyal Misused Rs 5,716 Crore of Public Money
New Delhi, 02 November(City Times):Naresh Goyal Jet Airways Fraud:The Enforcement Directorate (ED) has uncovered startling revelations in the case against Jet Airways, disclosing misappropriation of Rs 5,716.34 crore in public funds. While the ED provisionally attaches Rs 538.05 crore worth of Jet Airways properties, their investigation points to more substantial wrongdoing. This article delves into the legal aspects, the ED’s chargesheet, and the extensive misuse of public funds.
Misusing Public Funds: A Legal Perspective
The ED’s case is grounded in an FIR filed by the Central Bureau of Investigation (CBI) based on a complaint by Canara Bank, alleging a wrongful loss of Rs 538.62 crore during 2011-2019. Consequently, the ED has focused its prosecution complaint on this amount.
Implications of the Chargesheet
The ED’s prosecution complaint highlights how Jet Airways, under founder Naresh Goyal’s leadership, misappropriated immense public funds for various purposes.
Here’s a simplified table with proper headings Regarding The misappropriation involved:
|Amount (in Crores)
|Commission to Sales Agents
|Diversion of Funds for Personal Expenses
|Loans to Subsidiaries
|Professional and Consultancy Charges
|Total Proceeds of Crime
The Jet Airways’ Modus Operandi
The ED asserts that Naresh Goyal employed a similar modus operandi for all consortium loans. This manoeuvre siphoned off an alarming Rs 5,716.34 crore from consortium banks led by SBI and PNB. These funds are now considered the total proceeds of crime generated from criminal activities related to scheduled offenses committed by Jet Airways and its promoters.
The offense of money laundering is a continuing offense with cross-border ramifications. Therefore, further investigations are ongoing, and additional evidence may surface against the accused.
The Accused and Their Involvement
The ED’s chargesheet includes not only Naresh Goyal but also his wife, Anita, and four other companies: Jet Airways (India) Ltd, Jet Air Pvt Ltd, Jet Enterprises Pvt Ltd, and Jet Airways LLC Dubai.
Despite being imprisoned in Mumbai Central Prison, Naresh Goyal did not provide essential documents related to bank details and properties during the probe.
The Canara Bank Complaint
The foundation of the ED’s case is Canara Bank‘s complaint, supported by a forensic audit conducted by an external audit firm spanning from 2011 to 2019. This audit revealed the misuse of loans originally provided to Jet Airways (India) Ltd for its operational work.
The misused funds have resulted in turning loan accounts into non-performing assets (NPAs), amplifying the severity of the case.
Potential for Supplementary Charges
Given the complex nature of this case, the ED has sought the court’s permission to file supplementary or additional prosecution complaints. This could unearth further evidence against the accused or others involved in this financial wrongdoing under Prevention of Money Laundering Act (PMLA). The ED’s chargesheet in the Jet Airways case signifies a significant step in unravelling the extensive misuse of public funds and the legal consequences faced by the accused.