Naresh Goyal, the founder of the grounded airline Jet Airways, was sent to 14-day judicial custody by a special PMLA court in Mumbai on Thursday.
Goyal was arrested by the Enforcement Directorate (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 ED did not seek any further remand, and the court remanded him to judicial custody.
Goyal's lawyer, Amit Desai, had requested that he be sent to Taloja jail, which is a prison for undertrials. However, the court rejected the request and sent him to Arthur Road jail, which is a high-security prison.
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.
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.
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