Naresh Goyal diverted crores in bank loans through family, reveals ED chargesheet

The Enforcement Directorate (ED), which is investigating money laundering charges against Jet Airways founder Naresh Goyal, found that he allegedly misappropriated public funds obtained as business loans for various purposes, including commission to sales agents, personal and family expenses, loans to subsidiary companies with no business or income, and professional and consultancy charges paid to his wife, daughter, and son.

The Enforcement Directorate (ED), in a chargesheet against Jet Airways founder Naresh Goyal, his wife Anita Goyal, two children and four companies associated with him, said she was one of Jet’s directors when loans were sanctioned by different banks. It said that the loans later turned into nonperforming assets. It also alleged that she is a trustee-beneficiary of trusts formed by Goyal that are based in tax haven countries and where money is suspected to have been stashed. On the couple’s children, the ED chargesheet said Nivaan and Namrata Goyal were also employed by Jet following Goyal’s recommendation for an annual salary of around Rs 25 lakh each. It said Nivaan used to work in revenue management and Namrata in the cabin crew department. “Both of them started their careers at Jet Airways and were still in the learning phase. Still, they were given luxurious cars by the company and certain personal expenses were borne by the company,” the ED said. The investigation agency has not submitted a chargesheet against Nivaan and Namrata.

The ED said summons were issued to Nivaan, an NRI, but he didn’t cooperate and never responded to any notice. It said he is also the beneficiary of the proceeds of crime as some foreign properties that were earlier purchased by Naresh and family from the money siphoned off from JIL were recently transferred in his name through execution of gift deeds. “It is further revealed that he (Nivaan) has currently no business and occupation. His day-to-day expenses are met from money transferred by Naresh Goyal from his foreign-based accounts and trusts of Naresh Goyal based in tax haven countries. Further investigations to unearth such funds stashed in foreign jurisdiction are still on,” the ED said.

The chargesheet quoted Goyal’s statement that around $4 million was given to Nivaan for his business and expenses by trustees of foreign trusts settled by him. The chargesheet also elaborated on the alleged roles of Hasmukh Gardi, co-founder of JIL, in perpetuating the frauds. It said Tailwinds, the holding company of JIL, was incorporated in 1992 in Isle of Man, a tax haven country, and that its official papers and investment structure were prepared with Gardi’s assistance. “Naresh Goyal was an NRI since 1991 and holds hundreds of bank accounts in foreign countries... Hasmukh Gardi handled the foreign accounts of Naresh Goyal.Gardi even held the power of attorney since 2000 for the bank accounts of Naresh Goyal. He has been the ultimate controlling party of various related entities of JIL in conjunction with Naresh Goyal. He was also one of the trustees in trusts created by Naresh Goyal in India and abroad. He also created many companies in tax haven countries that were the subsidiary of velated GSAs (general sales agents) of JIL overseas,” the ED said.

ED has been investigating a fraud case against Goyal filed by Canada Bank. On Tuesday, the central probe agency had filed a chargesheet in the case. According to the Canara Bank’s FIR, it had allegedly sanctioned Rs 848 crore loans to Jet Airways. However, the now grounded airlines defaulted and a loan amount worth Rs 538 crore was pending.Goyal has been in ED custody since September 1 under the Prevention of Money Laundering Act and is currently lodged in Mumbai’s Arthur Road jail.According to the ED, Goyal laundered the bank’s money to other countries by creating trusts and used that to buy immovable properties overseas. Besides properties, the claimed, Goyal used loan money to buy furniture, apparel and jewellery.He, however, rejected the money laundering claim, saying the aviation sector runs on funding from banks and all those funds can’t be considered as money laundering.