Jet Airways founder Naresh Goyal to stay in Arthur Road jail during 14-day judicial custody

Naresh Goyal, the founder of the grounded airline Jet Airways, will stay in Arthur Road jail in Mumbai during his 14-day judicial custody.

A special PMLA court in Mumbai remanded Goyal to judicial custody on Thursday after the Enforcement Directorate (ED) did not seek any further remand.

Goyal was arrested by the ED on September 1 in connection with a money laundering case linked to an alleged fraud of ₹538 crore at the Canara Bank. The ED had alleged that Goyal and others had diverted the loan funds to their own accounts and used them for personal expenses.

The 74-year-old businessman was produced before the special PMLA court on Thursday morning after his ED custody remand ended. The court rejected Goyal's lawyer's request to send him to Taloja jail, which is a prison for undertrials.

Opens in a new window

Arthur Road jail is a high-security prison in Mumbai. It is known for its harsh conditions and overcrowding. Goyal is the first high-profile businessman to be lodged in the jail.

The ₹538-crore loan fraud case is related to a loan that Canara Bank had sanctioned to Jet Airways in 2012. The bank alleged that Jet Airways had defaulted on the loan and that Goyal and others had diverted the loan funds to their own accounts.

The ED had registered a money laundering case against Goyal and others in June 2022. The ED alleged that the accused had laundered the proceeds of the loan fraud through a complex web of shell companies.

Jet Airways was grounded in April 2019 due to financial problems. The airline is currently undergoing a bankruptcy process.

The arrest of Naresh Goyal is a major development in the ₹538-crore loan fraud case. It remains to be seen whether he will be able to get bail and how the case will proceed.

Here are some additional details about Arthur Road jail:

• It is one of the oldest and largest prisons in Mumbai.
• It has a capacity of 1,300 inmates, but it is currently overcrowded with over 2,000 inmates.
• The jail is known for its harsh conditions, including overcrowding, poor sanitation, and lack of medical facilities.
• Goyal will be kept in a separate cell and will be given special treatment due to his age and health condition.

The case against Goyal is still under investigation. It is possible that he will be released on bail after the investigation is completed. However, the case is also likely to go to trial, and Goyal could face a lengthy prison sentence if he is convicted.