Indian court orders Jet Airways founder to remain in custody until 9/11

Sep 2 (Reuters) – An Indian court ruled on Saturday that Jet Airways (JET.NS) Founder Naresh Goyal will remain in the custody of India’s financial crime agency until September 11, the agency said in a press release.

The Enforcement Directorate (ED), which investigates financial crimes in India, arrested goyal late on Friday.

Jet Airways did not immediately respond to a request for comment. Goyal has not publicly commented on the case in the past.

The case concerns an alleged 5,380 million Indian rupees (65.06 million dollars) bank fraud case presented by state lender Canara Bank (CNBK.NS). The losses for a consortium of nine lenders are much higher: 59.6 billion Indian rupees ($720.78 million), ED said.

The bank had filed a complaint in May against the airline, Goyal, his wife and a former director of the airline for “causing unreasonable loss” to the lender.

Goyal founded Jet Airways in 1992, but closed operations in April 2019 after running out of cash. The airline was the second largest airline in India by market share.

In its statement, the agency said that under Goyal’s leadership the airline diverted funds to foreign entities in Dubai, Ireland and other tax havens, including the British Virgin Islands.

“(ED’s) investigation revealed that, disguised as professional and consultancy fees, funds to the tune of 10 billion Indian rupees ($120.94 million) were earmarked for the personal expenses of Naresh Goyal and his family members.” says the statement.

(1 dollar = 82.6887 Indian rupees)

Our standards: The Thomson Reuters Trust Principles.