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Home > Mumbai > Mumbai News > Article > ED says Naresh Goyals misappropriation of funds for personal gains among reasons behind Jet Airways downfall

ED says Naresh Goyal's 'misappropriation of funds for personal gains' among reasons behind Jet Airways' downfall

Updated on: 01 November,2023 10:14 PM IST  |  Mumbai
mid-day online correspondent |

ED, in its chargesheet, revealed that Naresh Goyal's "incessant siphoning off of funds for personal pecuniary gains" in the downfall of Jet Airways.

ED says Naresh Goyal's 'misappropriation of funds for personal gains' among reasons behind Jet Airways' downfall

Naresh Goyal at the court. Pic/Atul Kamble

The Enforcement Directorate (ED) has filed a chargesheet in a Mumbai court, shedding light on the alleged fraud of Rs 538 crore at Canara Bank and the factors contributing to the downfall of Jet Airways. The chargesheet highlights Naresh Goyal's "incessant siphoning off of funds for personal pecuniary gains" as a key reason behind the airline's demise.


According to the ED, Jet Airways could have potentially survived had Naresh Goyal allowed professionals to make strategic decisions and refrained from draining funds from the struggling airline for personal gain. The chargesheet reveals that Goyal channelled funds from the loss-making Jet Airways into entities owned by his family members in India and abroad.


The investigation suggests that the irrational decisions made by top executives, Goyal's resistance to diluting his stake, and his continuous siphoning of funds from Jet Airways were detrimental to the company. Potential investments from strategic investors like Tata, TPG (Private Equity), and Etihad were hindered by Goyal's unwillingness to dilute his equity.


The chargesheet also alleges that Goyal and his family were living an "ultra-luxurious life" while indirectly receiving substantial funds from Jet Airways without contributing to the airline's operations. Goyal is accused of creating foreign trusts and holding expensive assets abroad, complicating the investigation.

In addition to Naresh Goyal, the chargesheet includes his wife, Anita Goyal, and four companies related to Jet Airways. The ED's investigation aims to trace the proceeds of the alleged crime and the diversion of funds from multiple entities.

This case originated from an FIR filed by the Central Bureau of Investigation (CBI) against Jet Airways, Naresh Goyal, his wife Anita, and former company executives, in connection with an alleged Rs 538-crore fraud case at Canara Bank. The ED contends that funds obtained from various banks were diverted for malafide purposes, including personal expenses and lending to related parties.

Anita Goyal's role is also under scrutiny, as she was a beneficiary in trusts held by Naresh Goyal in foreign jurisdictions. She was associated with various entities related to Jet Airways, earning significant consultancy fees based on oral commands.

The ED arrested Naresh Goyal in September under the Prevention of Money Laundering Act (PMLA), and he is currently in judicial custody at Arthur Road jail in Mumbai.

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