Founder of India’s Jet Airways Denied Bail in Fraud Case

The founder of Jet Airways, Naresh Goyal, has been denied bail by the Mumbai High Court in relation to fraud and breach of trust charges stemming from his time at the helm of the airline. The court dismissed Goyal’s challenge to what he deemed his “illegal arrest” on September 1, emphasizing that the petition seeking a writ of habeas corpus could not be entertained in the given circumstances.

Goyal was arrested by India’s Enforcement Directorate (ED) in September over alleged offences related to a significant loan provided by Canara Bank to Jet Airways. The court’s decision highlighted concerns about Goyal’s “uncooperative, recalcitrant, evasive, and suspicious” behavior during the investigation, justifying the need for his arrest and remand.

The ED contends that Goyal embezzled funds from loans to Jet Airways, accusing him of deliberately obstructing investigations with elusive and misleading responses. The agency also raised concerns about potential interference with witnesses or evidence if Goyal were to be released. As the legal proceedings unfold, Goyal remains in custody in a Mumbai prison.

Jet Airways collapsed in 2019, subsequently entering insolvency proceedings and being sold to the Jalan Kalrock Consortium. The consortium is currently working on relaunching the airline but faces challenges in garnering support from creditors and lenders. Stay tuned for further updates on this legal development.