Naresh Goyal: who went from controlling the largest private airline in the nation to being completely indebted.

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By Network500News

According to ED officials, Goyal was taken into custody on Friday night. By presenting Goyal at the special PMLA court on Saturday, the ED can demand remand.

Naresh Goyal: who went from controlling the largest private airline in the nation to being completely indebted.
Naresh Goyal, the founder of Jet Airways India Limited, has been detained by the Enforcement Directorate (ED) in connection with a money laundering case involving Rs 538 crore. According to ED officials, Goyal was detained on Friday night. On Saturday, ED may present Goyal in the special PMLA court and ask for his remand. Based on the FIR filed by the CBI, ED began looking into this case of money laundering. In the Canara Bank fraud case, the CBI has charged Goyal, his wife Anita, and a few former firm officials.

What has Naresh Goyal been accused of?

On the basis of the allegation from the bank, the CBI had filed a FIR. In this, the bank claims that Jet Airways Ltd. (JAL) was the victim of fraud. JAL received an 848.86 crore rupee loan, of which 538.62 crore rupees are still owed. On July 29, 2021, this account was deemed fraudulent. The bank claimed that the company’s forensic investigation showed that it had diverted money intended for Jet by paying its other companies commissions totaling Rs 1,410.41 crore. Jet also made investments or loans to its subsidiaries to pay them.
Jet Airways

Its labor of love gave birth to the largest private airline in the nation.

Naresh Goyal began working in a travel firm in 1967 after earning his degree. where he was in charge of a Lebanese airline’s operations. Naresh Goyal gradually acquired expertise in this field and afterward held important positions with other major airlines. After that, Naresh Goyal and his wife Anita Goyal founded Jet Air Private Limited, but initially, the business handled the marketing and sales of foreign airlines. Jet Airways launched its domestic flight operations on May 5, 1993, using two Boeing 737 and Boeing 300 aircraft. Jet Airways gradually grew to be one of the biggest private airlines in the nation, and the corporation once owned a total of 120 aircraft. Naresh Goyal was one of the top 20 richest persons in the nation when Jet Airways was operating 650 flights per day at its busiest.

The flight was grounded due to the mounting debt.

Jet Airways paid $500 million in cash to acquire the struggling Air Sahara in 2006; the deal ultimately went bad. This dealt Jet Airways a serious hit. Likewise, Jet Airways was unable to locate strategic investors. The result was a rise in the company’s losses. In the meantime, low-cost carriers like Indigo, Spice Jet, and Go Air entered the Indian airline market and snatched market share from Jet Airways by providing affordable airfare.
Troubled In 2013, Jet Airways sold its 24% interest to Etihad Airlines. The corporation decreased employee salaries by 25% in order to make up for the losses from 2018. Additionally, free food was no longer provided to passengers on domestic flights. Jet Airways was finally grounded on April 17, 2019, as a result of non-payment of the lease fee. The business owed certain foreign banks, including Canara Bank, Bank of India, Syndicate Bank, Indian Overseas Bank, and Allahabad Bank, Rs 8,000 crore. Naresh Goyal’s problems have now gotten worse as a result of his arrest in the money laundering case.

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