Funds had also been diverted to the accounts of Goyal’s family members including his wife and children as well as to companies and trusts created by him in tax havens such as Jersey and the British Virgin Islands, the agency claimed. He also acquired properties abroad, including in Dubai and the UK, it said. The allegations were part of the ED’s application on Saturday before a special court seeking the remand of Goyal, who was arrested late on Friday. The court dealing with money-laundering cases sent him to ED’s custody till September 11.
ED’s case is based on a first information report registered by the Central Bureau on a complaint filed by Canara Bank, which claimed that it was defrauded of ₹538.62 crore.
During the arguments at the court, Goyal’s counsels Abad Ponda and Ameet Naik said the Bombay High Court had granted a stay till September 11 on Canara Bank’s proceedings declaring Goyal’s account as fraud, for want of an opportunity of being heard. Consultancy Fees Under Scanner
“ED’s case is based on the CBI’s FIR. The HC had observed that the CBI’s proceedings are based on the FIRs which are dehors the master circular,” Ponda argued.Naik said according to the minutes of a lenders’ meeting held on May 8, 2020, to discuss a forensic audit report submitted by EY, the members “observed that prima facie it appears that there was no conclusive evidence of fraud finally established by the forensic auditor”. He said Canara Bank also participated in the meeting. In its remand application, the ED said payments of Rs 1,152 crore made by the airline in the form of professional and consultancy fees between FY12 to FY18 were under its scanner.Citing EY’s audit report as well as statements that it said were given by Amit Aggarwal, a former chief financial officer of Jet Airways, the ED said during FY12-19, the company had paid Rs 9.46 crore to the family members of Goyal including his wife and two children. Aggarwal, according to the ED, told it that such payments were approved directly by Goyal’s secretary on the orders given by Goyal and that the finance department had no say in approving those. Excerpts of his purported statement are part of the remand application.
ED’s counsel Sunil Gonsalves said Jet Airways’ funds were used to pay salaries of the company of Goyal’s daughter Filmstoc Pvt Ltd. Also certain movable assets were purchased for Naresh Goyal and his wife Anita, the ED claimed, citing an audit partner of EY.
According to the audit report, it said, certain emails suggested that the salary expenses of the residential staff of Goyal in Mumbai and Delhi were potentially borne by Jet Airways.
ED’s investigation revealed that in the garb of professional and consultancy expenses, dubious expenses of Rs 1,000 crore had been booked in the Jet Airways’ accounts, the agency said in a statement.
