Canara Bank Fraud Case: ED seizes property worth Rs 538 crore

The Enforcement Directorate (ED) has taken action against Jet Airways founder Naresh Goyal and five others in the Canara bank fraud case. ED has seized property worth Rs 538 crore in this case. The attached properties include 17 residential flats and bungalows and commercial campuses in the names of various companies and individuals.

CBI and ED had registered a case against Naresh Goyal and others on the basis of a complaint by Canara Bank. This case is related to fraud (money laundering) of Rs 538 crore in Canara Bank. In this case, ED had arrested Naresh Goyal on September 1.

Canara Bank Fraud Case

  • Jet was given credit limits and loans worth Rs 848.86 crore, of which Rs 538.62 crore is outstanding. This account was declared ‘fraud’ on 29 July 2021.
  • On May 5, CBI searched 7 locations including Goyal’s office in Mumbai. The houses of Naresh Goyal, Anita Goyal and Jet executive Gaurang Shetty were also raided.
  • On the basis of CBI’s FIR, ED registered a case of money laundering on July 19. Then ED also raided and searched the premises of Goyal and his associates.
  • On September 1, ED arrested him in the money laundering case after questioning him in the Mumbai office.

Misappropriation of money

Canara Bank had alleged that the forensic audit of Jet Airways found that Jet transferred Rs 1,410.41 crore to its associated companies. This was done to withdraw money from the company’s account.

The Goyal family’s personal expenses like staff salaries, phone bills and vehicle expenses were all borne by Jet Airways. Goyal founded Jet Airways in 1993. In 2019, he left the post of chairman of the airline.

Jet Airways has been closed since April 2019

Jet Airways was once one of the largest private airlines in India and had the status of the largest private airline in the South Asian nation. Then, due to debt burden, Jet Airways was grounded on 17 April 2019.

In June 2021, the Jalan-Kalrock consortium won the bid for Jet Airways under the bankruptcy resolution process of the National Company Law Tribunal (NCLT). Since then, the process of revival of Jet is going on, but till now the airline has not been started.

Jalan-Kalrock consortium

This consortium is a joint company of Murari Lal Jalan and Kalrock Capital. Jalan is a Dubai-based businessman. Kalrock Capital Management Limited is a London-based global firm working in the field of financial advisory and alternative asset management.

Jet Airways

In the early 1990s, ticketing agent-turned-entrepreneur Naresh Goyal gave people an alternative to Air India by starting Jet Airways India Limited. At one time Jet had a total of 120 planes and was one of the leading airlines.

When the company was at its peak, it used to operate 650 flights every day. When the company closed, it was left with only 16 planes. By March 2019, the company’s loss had reached Rs 5,535.75 crore. In April 2019, after running for 25 years, Jet Airways was under heavy debt, after which the company was closed.

Who is Naresh Goyal?

Naresh Goyal is an Indian entrepreneur and the founder of Jet Airways, one of India’s prominent private airlines.

When did Naresh Goyal step down as the chairman of Jet Airways?

Naresh Goyal stepped down as the chairman of Jet Airways in 2019. The airline faced financial difficulties and ultimately ceased operations in April 2019.

What is Naresh Goyal’s current status in the aviation industry?

Naresh Goyal is no longer actively involved in Jet Airways. The airline is undergoing a revival process under new ownership.

When was Jet Airways founded?

Jet Airways was founded on April 1, 1992.

What was the peak status of Jet Airways when it was operational?

At its peak, Jet Airways was one of the largest private airlines in India, operating numerous domestic and international flights.

How many planes did Jet Airways operate during its operational years?

At its operational peak, Jet Airways operated a fleet of around 120 planes.

When did Jet Airways undergo bankruptcy resolution, and who led the revival process?

The bankruptcy resolution process for Jet Airways began under the National Company Law Tribunal (NCLT) in 2021. The revival process is led by the Jalan-Kalrock consortium.

Who are the members of the Jalan-Kalrock consortium?

The Jalan-Kalrock consortium comprises Murari Lal Jalan, a Dubai-based businessman, and Kalrock Capital Management Limited, a London-based company specializing in financial advisory and asset management.

What is the current status of Jet Airways?

The revival process of Jet Airways is ongoing, but the airline has not resumed operations.

When was Canara Bank founded?

Canara Bank was founded on July 1, 1906, in Mangalore, Karnataka, India.

Does Canara Bank provide international banking?

Yes, Canara Bank has an international presence and provides international banking activities, including NRI services and correspondent banking.

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