Mumbai: Founder of Defunct Jet Airways Naresh Goyal Arrested By ED Amidst Canara Bank’s 538 Crore Rupee Loan Default Investigation

Mumbai, 2nd September 2023: Hitting a doubleheader, the Enforcement Directorate (ED) has arrested Jet Airways founder Naresh Goyal as part of an ongoing probe into the Canara Bank loan default issue. This is the ED’s second major achievement in less than a week; two days ago, the ED arrested a managing director of Power Private Limited Company in Mumbai in a financial embezzlement case. The ED was looking into Canara Bank’s Rs 538 crore loan default in this matter.

This turn of events follows a case of fraud registered by the Central Bureau of Investigation (CBI) on May 3, acting upon a complaint filed by P. Santosh, the Chief Managing Director of Canara Bank’s Debt Recovery and Legal Division. The complaint, submitted by P. Santosh, on November 23, 2022, levels serious allegations against Goyal, including cheating, criminal conspiracy, criminal treachery, and breach of criminal law.

The loan facility in question was extended by Canara Bank’s corporate office, located in the Cuffe Parade area, to Goyal. The alleged fraudulent activities are reported to have occurred between April 1, 2009, and June 5, 2019, when Jet Airways’ account was declared insolvent by the bank. The bank’s losses in this matter amount to a staggering sum of Rs 538 crore. It is alleged in the complaint that, upon closer examination, it was discovered that the funds provided by the bank had been diverted by Mr. Goyal to other things.

Notably, a case has been registered against an unidentified government official implicated in this matter, with allegations that this individual aided Mr. Goyal in their activities. In this regard, the Delhi CBI has filed a case under Sections 13(2) and 13(1) of the Prevention of Corruption Act, along with Sections 409, 420, and 120(b) of the Indian Penal Code.