The Enforcement Directorate detained Naresh Jagdishrai Goyal, the founding chairman of Jet Airways (India) Limited. On September 1 in connection with an alleged loan scam involving Canara Bank, which amounted to approximately 538.62 crore.
The ED’s Mumbai office called Mr. Goyal to give a statement, recorded it, questioned him, and subsequently arrested him.
The Central Bureau of Investigation (CBI) filed a case on which the ED investigation is based in May. Authorities identified the defendants as Mr. Goyal, his wife Anita Naresh Goyal, and Gaurang Ananda Shetty in the business case.
The firm initially received a working capital limit of 126 crore. An inland letter of credit/financial bank guarantee limit of 100 crore for various purposes, as per the allegations. In addition to the 17.52 crore short-term loan, it also obtained 400 crores as a term loan for operational expenses and 200 crores for aircraft reconfiguration. The launch of new routes, business development, and other related operations.
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In October 2018, when the inter-creditor agreement provisions were selected, the lead lender chose the State Bank of India.
The mandate required Jet Airways to present a resolution plan and inject $3,500–4000 crore. However, the firm did not meet these requirements. As of December 31, 2018, it was also in default on installment payments.
On June 5, 2019, according to Canara Bank, its loan account became a non-performing asset. A forensic analysis of the company’s financial records from April 1, 2011, to June 30, 2019, which included the cheque period. Later discovered the alleged syphoning and diversion of cash.
The allegations assert that the linked parties received payments totaling 1,410.41 crore out of the commission costs, and they siphoned off the money through Jet Lite (India) Ltd. through advances or investments before writing it off. Between 2011 and 2018, Jet Lite received 13,529.62 crore in exchange for a loan of 14,552.44 crore.
The bank also claimed that Jet Airways was employing many methods to move borrowed money to group or subsidiary firms.During the study period, the organization expended a total of 1152.62 crore rupees on professional and consulting services. They discovered suspected suspicious transactions amounting to 197.57 crore rupees in the case of the connected entities.
Allegations claim that the corporation paid over 420 crores to organizations that submitted invoices listing services differing from their actual business operations.
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