Mumbai: The Enforcement Directorate (ED) has alleged that Jet Airways founder Naresh Goyal remained non-cooperative and kept on blaming other persons for misdeeds during his 10-day custodial remand in connection with a Rs 538 crore PMLA case.
Noting that the statement of Goyal recorded by the ED indicated that he gave some evasive answers during questioning, the court extended his custodial remand till September 14.
“It is the contention of the ED that huge loan of Rs 538 crore was taken from a consortium of banks for a specific purpose, which was not utilised for the same, but for personal gains and needs. It is also alleged that from the said proceeds of crime, properties were purchased abroad. The accused alone knows the details thereof, so unless he cooperates, the investigation cannot reach the end use of the said proceeds of crime.
“The statements of the accused prima facie indicate that he avoided to give details of all his bank accounts in India and abroad, and details of movable and immovable properties in India and abroad. When he was interrogated on these details, he referred to the name of Hasmukh Gardi, a resident of the UAE whom he had given power of attorney. Therefore, confrontation of the said person with the accused is necessary and the ED has taken active step for the same,” the court said in its order.
The court noted that various statements and materials collected during his ED remand revealed that Goyal created various trusts abroad through which he purchased various immovable properties. The court said the money for those trusts was nothing but the proceeds of crime siphoned off from India to abroad.
Goyal did not provide those details, but referred to Dilip Thakkar whom the ED proposes to examine and confront with the accused. He would be appearing before ED on September 14.
Careful examination of the statements indicates that Goyal denied any role in approving the exorbitant bills of professionals and advocates, but his secretary, Jennifer D’souza, and Amit, ex-CEO of Jet International Ltd, have confirmed the same.
Gautam Acharya, VP (Legal) of the company, even submitted documents for the same and the ED is desirous to confront the accused with those documents. The accused has denied his role in leasing and purchasing aircraft, but the minutes of Board meeting clearly indicate that Goyal was at the helm of affairs personally for negotiations in Boeing purchase.
“His company had appointed various GSAs worldwide which were getting commission from the company. His relatives were at the helm of affairs in these GSAs. Those details are yet to be received from the accused,” the court noted while extending the remand of Goyal.
“That the investigation of the case is already ongoing and during the interrogation of Goyal in the said period of 10 days and from the statements of other accused and witnesses, it emerges inter alia that exorbitant payments were made by JIL to different professionals and consultants at his behest through his secretary.
“He himself was spearheading the negotiations pertaining to GSAs, leasing and purchasing of aircraft etc. on behalf of JIL and playing a dominating and significant role in decision making in the JIL board,” read the ED’s remand copy.
It added that Goyal remained non-cooperative and kept on blaming other persons for misdeeds perpetrated by him.
During interrogation, Goyal kept on making contrary statements to the facts as ascertained from various minutes of meetings. The information and documents pertaining to different agreements and trusts (Indian and foreign) were gathered from various associates of Goyal, as named by him and the same has to be confronted.
“The hundreds of bank accounts in the name of Goyal and his family members along with the accounts of JIL are being scrutinised and money subsidiaries and group companies are also required to be confronted with the accused.
“Goyal is highly uncooperative, recalcitrant, evasive and suspicious in his statements unwarranted delay in extracting and conduct which causes the information pertaining to the suspicious transactions undertaken by him for layering and integrating the proceeds of crime and further for the purpose of identifying the proceeds of crime,” the ED said in its remand copy, while requesting for four-day custodial remand of Goyal.
The ED case is based on an FIR filed by the CBI on May 3, following a written complaint of Canara Bank, Mumbai, against Jet Airways (India) Ltd, Naresh Goyal and others. They were accused of siphoning off bank funds with the help of their subsidiaries showing bogus expenses and thereby caused a loss to the tune of Rs 538.62 crore to the bank.
During the forensic audit conducted by Ernst & Young on Jet Airways (India) (JIL) for the period from April 1, 2011 to June 19, 2019, it was revealed that JIL was promoted by Tail Winds Ltd, an overseas corporate body, which was 100 per cent owned by Goyal and his associates and registered in the Isle of Mann.
Further, JIL was dealing with Canara Bank since 2005 and all the exposures were under the State Bank of India led consortium arrangement. Moreover, State Bank of India, along with other consortium banks, had overall outstanding exposure of Rs 6,000 crore to JIL.
“As JIL defaulted in payments of loan installments in 2018, the accounts of JIL slipped into non-performing assets (NPA) in 2019, having a book liability as on the date of NPA worth Rs. 538.62 crore in respect of Canara Bank. This amount is nothing but the proceeds of crime which has been diverted and siphoned off by the accused persons,” read the remand copy.
The ED said that during the course of investigation, it was revealed that the proceeds of crime thus generated were diverted and siphoned off in the garb of professional and consultancy expenses, which were paid to various entities. Loans worth thousands of crores of rupees were given to related parties and subsequently written off. Loan funds obtained from different banks were used to incur the personal expenses of Goyal and his family members.
“Moreover, the proceeds of crime were siphoned off in the trusts based in tax haven countries, including BVI and Jersey, and were used to acquire properties in the name of Goyal and his family members in the UAE and London. Therefore, we arrested Goyal,” the remand copy read.
The counsel appearing for Goyal (74) said that his client is suffering from various medical issues. Recently, his wife had undergone chemotherapy being a cancer patient. Therefore, further extension of ED custody should not be granted.
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