Jet Airways founder gets bail in money laundering case

Jet Airways founder Naresh Goyal, 75, has been granted bail in a money laundering case by the Bombay High Court today. The promoter of now-defunct Jet Airways was granted an interim bail on medical grounds in May 2024 but the interim order was made permanent today.

The businessman has reportedly been diagnosed with cancer and had applied for bail on medical grounds, which was opposed by the probe agency ED (Enforcement Directorate). The agency had stated that Goyal could avail medical treatment while staying in jail.

The ED had arrested Goyal in a 2021 money laundering case worth ₹538.62 crore in September 2023. The case stemmed from an FIR (first information report) filed by the CBI against Goyal, his wife Anita Goyal and some former executives of Jet Airways in an alleged bank fraud case worth ₹538 crore.

The CBI registered the FIR after Canara Bank in November 2022 alleged that it sanctioned credit limits and loans worth ₹848.86 crore to Jet Airways, of which ₹538.62 crore remained outstanding. As per the FIR, the Jet Airways account was declared fraud on July 19, 2021. In May 2023, the central agency conducted a probe against seven premises of Jet Airways including Goyal’s residence in connection with the case.

The bank alleged that Jet Airways siphoned off funds worth ₹1,410.41 crore to "related companies" out of total commission expenses. The alleged amount was diverted via Jet Lite (India) Limited. "As per the sample agreement of JIL, it was noted that the expenses of the General Sales Agents (GSA) were to be borne by GSA itself and not by JIL. However, it was observed that JIL has paid various expenses amounting to ₹403.27 crore, which is not in tune with the GSA," the bank’s complaint stated.

Notably, Jet Airways shut operations in 2019 after it failed to pay vendors due to bankruptcy. The Jalan-Kalrock consortium took over the airline in October 2020 after placing a successful bid during the corporate insolvency resolution process from June 20, 2019, until June 22, 2021.

In May 2022, DGCA (Director General of Civil Aviation) granted an air operator's certificate (AOC) to Jet Airways to resume flight operations. However, despite getting a green signal from DGCA, the revival plan of Jet had hit several roadblocks owing to non-payment of dues to the lenders.

Thereafter, the Jalan-Kalrock Consortium deposited ₹100 crore as payment to lenders in Jet Airways, though the NCLAT has asked the consortium to pay ₹350 crore to lenders by September 30. Before that, the consortium had infused ₹150 crore as a performance bank guarantee in Jet Airways.

However, despite these efforts, the airline couldn’t be saved as the Supreme Court last week ordered the liquidation of the airline after it found the consortium had not complied with the resolution conditions.