The Enforcement Directorate arrested Jet Airways Ltd. founder Naresh Goyal in the money laundering case, in spite of a Bombay High Court order staying further proceedings in the underlying fraud case, said Senior Advocate Amit Desai. The arrest is therefore illegal. Desai, who is representing Goyal, submitted it before the Bombay High Court on Thursday.
Goyal had approached the Bombay High Court against his arrest in a money laundering case on Sept. 20. According to him, the arrest violates his constitutional right to personal liberty and is therefore illegal. The Enforcement Directorate arrested Goyal on Sept. 1 in connection with a case of suspected money laundering involving a Rs 538 crore loan that Canara Bank had given to the airline. After being sent to ED custody at first, a special court in Mumbai issued an order returning him to judicial custody. He is currently serving judicial custody at Arthur Road Jail. The case pertains to the Central Bureau of Investigation’s FIR against Jet Airways, Goyal, and his wife Anita in an alleged fraud case. According to Canara Bank, it sanctioned a loan of Rs 849 crore to Jet Airways,of which Rs 538 crore was outstanding.
According to Desai, the Bombay High Court, in an order on July 17, had stayed all proceedings against Goyal, initiated based on a forensic report by EY revealing fraud. This was done because Canara Bank's report was based on a master circular of the RBI that classified accounts as frauds mechanically without affording the account holder an opportunity of hearing. The Supreme Court, too, had stayed the circular, citing a violation of natural justice.
12/10/2023 Sahyaja S/BQ Prime
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