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Jet Airways founder Naresh Goyal has approached a special PMLA court in Mumbai seeking discharge from the money laundering case linked to an alleged INR 538.62 crore bank fraud involving Canara Bank. The court agreed to hear his plea after directing that he should not seek an adjournment during the proceedings. The prosecution has been asked to file its response before the matter is taken up again on August 17. Goyal was arrested by the Enforcement Directorate in 2023 and is currently out on medical bail. The case originated from a CBI FIR against Jet Airways and others.
Jet Airways founder Naresh Goyal has moved a plea before a special court in Mumbai seeking discharge from the money laundering case registered against him by the Enforcement Directorate (ED) in connection with an alleged INR 538.62 crore bank fraud.
The special court designated under the Prevention of Money Laundering Act (PMLA) agreed to hear Goyal’s discharge application on the condition that he would not seek any adjournment during the hearing. The court has directed the prosecution to file its reply and has posted the matter for August 17.
The development comes after the court had directed Goyal, who is 77, to appear for the proceedings related to framing of charges. His earlier request for more time to file a discharge application had been rejected by the court.
The special PMLA court had observed that the case dates back to 2023 and that Goyal had not taken steps to file a discharge application during the intervening period. The court had therefore indicated that the proceedings could not be delayed further on the ground that a discharge plea was yet to be filed.
Goyal was arrested by the ED in September 2023 in connection with allegations that funds from loans extended by state-owned Canara Bank to Jet Airways were siphoned off and subsequently laundered. The alleged bank fraud involves INR 538.62 crore.
The money laundering investigation was initiated on the basis of a Central Bureau of Investigation (CBI) FIR against Jet Airways, Goyal, his wife Anita Goyal and some former executives of the airline. The CBI case relates to alleged financial irregularities involving loans extended by Canara Bank to the airline.
The ED had subsequently filed a prosecution complaint in the matter. During its investigation, the agency had said it found public funds worth around INR 5,716.34 crore as the total proceeds of crime identified during the probe. However, since the ED case was based on the CBI FIR concerning the alleged INR 538.62 crore loss to Canara Bank, the agency restricted the proceeds of crime considered for the chargesheet to that amount. The ED had also provisionally attached properties worth around INR 538.05 crore in connection with the case.
Goyal has denied the allegations. During earlier proceedings, his legal team had maintained that he had not siphoned off the loan funds for personal benefit. His defence had also referred to the financial difficulties faced by Jet Airways and the substantial losses incurred by the airline before it ceased operations.
His arrest had also been challenged before the Bombay High Court. The court subsequently dismissed his plea challenging the legality of the arrest, after the ED maintained that his custody was required as part of the investigation into the alleged laundering of the Canara Bank loan.
Goyal was later granted relief on medical grounds and is currently out on medical bail. The court proceedings concerning the money laundering case, however, remain pending.
In a separate development last year, the Bombay High Court quashed the Bank of India’s decision to classify Goyal’s bank account as fraudulent and also set aside related actions arising from that declaration. The order did not end the separate ED money laundering proceedings against him.
Under the PMLA proceedings, Goyal’s latest application seeks discharge before the court formally frames charges. A discharge application is considered after the investigating agency has filed its chargesheet but before charges are framed. If the court finds that the material placed before it does not provide sufficient grounds to proceed against an accused, it can discharge the person from the case.
The prosecution’s response to Goyal’s plea and the court’s consideration of the discharge application will determine whether the case proceeds towards framing of charges against him.
Source PTI
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