1 of 2 | Naresh Goyal, the founder and former chairman of Jet Airways, was taken into custody on Saturday following his arrest in connection to a bank fraud case involving the now-defunct airline. (File Photo by Money Sharma/EPA-EFE)
Sept. 2 (UPI) — Renowned businessman Naresh Goyal, the founder of the defunct Indian airline Jet Airways, is now in custody after being arrested by authorities in Mumbai for his alleged involvement in a bank fraud case.
Officials from India’s Enforcement Directorate have detained Goyal over charges of laundering approximately $65 million (5.38 billion rupees).
Prosecutors are determined to keep the 74-year-old in custody while they proceed with the case.
Goyal and his wife Anita Naresh Goyal have been accused of failing to repay millions in loans that were extended to the airline. It is uncertain whether Anita Goyal has been detained or charged, but her name is mentioned in the complaint filed by Canara Bank of Bangalore, India.
According to authorities, the couple managed to secure over $102.6 million (8.488 billion rupees) in loans and credit over a span of several years while operating Jet Airways, which ceased operations in 2019. A substantial amount of $65 million is still outstanding.
Investigators believe that the couple funneled the money into their personal accounts and used it for expenses such as phone bills and vehicle purchases.
In July, officials attempted to question Goyal but were unable to locate him at that time.
Goyal, who was charged under India’s Prevention of Money Laundering Act, established Jet Airways in 1992, and the airline commenced operations a year later.
At its peak, Jet Airways had a fleet consisting of four Boeing 737 aircraft for short-to-medium-haul flights and three Boeing 777 jets for long-haul operations.
Although the company was once India’s largest private carrier, it could not sustain its mounting debt.
Forensic audits exposed the financial discrepancies within the company.
During ongoing insolvency proceedings, the company was sold to a conglomerate of private investors in 2021, with plans to relaunch the airline the following year. However, as of now, the company has yet to resume operations.
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