Enforcement Directorate Seizes INR 5.38 Billion in Properties Linked to Jet Airways’ Founder

India’s Enforcement Directorate (ED) has taken action against Naresh Goyal, the founder of Jet Airways (JAI), accusing him of “massive financial fraud” during his tenure at the now quasi-defunct airline. On November 1, 2023, the ED seized 17 residential and commercial properties valued at INR 5.38 billion (USD 64.7 million) linked to entities and individuals associated with Goyal.

The ED’s move follows the arrest of Goyal in September, prompted by a complaint from the state-owned Canara Bank. The complaint alleged Goyal’s involvement in cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct. Additionally, the ED claims that Jet Airways diverted loans from a consortium of banks, including the State Bank of India and Punjab National Bank, leading to a “massive financial fraud.”

The seized properties, held under various companies and individuals, including Jetair Private Limited, Jet Enterprises Private Limited, Naresh Goyal, his wife Anita Goyal, and son Nivaan Goyal, are located in London, Dubai, and different states in India.

The ED’s statement asserts that Goyal orchestrated a systematic diversion of funds from Jet Airways, which were subsequently utilized for personal expenses and investments by Goyal and his family. The agency has been actively pursuing Goyal since Jet Airways ceased operations in 2019, with ongoing legal battles and investigations.

Despite successfully defending charges in the past, Goyal has been in custody since September 1, 2023, and is currently detained at Mumbai Central Prison. The ED’s intensified investigations indicate a continued effort to address alleged financial irregularities associated with Goyal and Jet Airways.

Jet Airways, following its collapse, was eventually sold to the Jalan Kalrock Consortium (JKC), which plans to revive the airline. However, the Goyal family no longer has any association with Jet Airways. The ED’s recent property seizures underscore the regulatory efforts to address financial misconduct within the aviation industry and associated entities.