Naresh Goyal Net Worth, ED Controversy: In a case involving Canara Bank and an alleged 538 crore in money laundering, the Enforcement Directorate (ED) has detained Jet Airways’ founder, Naresh Goyal. The Enforcement Directorate (ED) questioned Goyal, 74, at length in their Mumbai headquarters before taking him to jail under the PMLA. In Mumbai, he was presented before a PMLA court. The Court on Thursday, September 14, remanded Jet Airways founder Naresh Goyal to 14-day judicial custody.
Naresh Goyal Biography
Naresh Goyal was born on December 29, 1949, in Sangrur, Punjab. Despite coming from a family of jewelers, Goyal had it rough from the start. Up till the sixth grade, Goyal attended the Government Raj High School for Boys. His uncle from his mother’s side supported him financially through college and beyond. Initially, he intended to become a chartered accountant, but life circumstances led him to get a Bachelor of Commerce degree instead.
Naresh Goyal Career
After finishing college, Naresh went to work for Lebanese International Airlines as a general sales agent (GSA). In 1969, he was named Public Relations Manager of Iraqi Airways, and between 1971 and 1974, he held the same role for ALIA Royal Jordanian Airlines.
In 1974, he and his brother launched a travel firm they called Jetair with the help of a loan of about £500 from their mother. Air France, Austrian Airlines, and Cathy Pacific were among the airlines whose sales and marketing he handled. In 1975, Philippe Airlines hired him as their Regional Manager to oversee their business activities in India.
Naresh started an airline in 1991 after the government of India declared its Open Skies Policy, and in 1992, he rebranded his firm as Jet Airways. In 1975, Philippe Airline hired him as their Regional Manager to oversee their business activities in India. Naresh started an airline in 1991 after the government of India declared its Open Skies Policy, and in 1992, he rebranded his firm as Jet Airways.
Naresh Goyal Net Worth
Forbes assessed Naresh Goyal’s net worth to be $1.9 billion, and he was also named the 16th richest Indian. But his luck changed radically when his business failed.
In November 2013, Etihad acquired 24 percent of Jet Airways’ shares. Naresh Goyal kept 51 percent of the company.
The corporation requested a rescue from its shareholders for $840 million in 2019. Lenders completed the airline’s resolution plan and committed to providing Rs 1,500 crore in interim finance for two months.
Publicly traded stock holdings for June 30, 2023, show that Naresh Goyal owns 2 equities with a combined market value of more than Rs. 568.1 Cr.
Naresh Goyal Arrested: Naresh Goyal and ED Controversy
On Thursday, September 14, the court hearing the money laundering case against Jet Airways founder Naresh Goyal ordered him to 14 days of judicial detention in connection with an alleged fraud of Rs 538 crore at the Canara Bank.
After extensive interrogation at their headquarters, the Enforcement Directorate (ED) detained Goyal on September 1 under the Prevention of Money Laundering Act (PMLA).
The Central Bureau of Investigation (CBI) filed a First Information Report (FIR) against Jet Airways, Goyal, his wife Anita, and several former business officials in connection with an alleged Rs 538-crore fraud case at the Canara Bank, which led to the money laundering case.
The bank claimed in its FIR that it had extended credit to Jet Airways (India) Ltd for Rs 848.86 crore, of which Rs 538.62 crore was still unpaid.
According to the rating agency, Goyal’s Jet Airways (India) Limited (JIL) had Rs 5,951.46 crore in non-performing assets (NPAs), with the State Bank of India (SBI) holding the largest share (Rs 1,636.23 crore) among the consortium of nine banks that had exposure to the company and its promoters.
According to another news source, the ED claimed that Jet Airways borrowed money from 10 banks to cover operating costs between 2011–2012 and 2018–2019. However, a total of 6,000 remains due on the loan. According to the agency, a forensic assessment uncovered a theft of 1,152 crores disguised as advisory and professional fees and another theft of 2,547.83 crores used to pay off a debt at a sister company, Jet Lite Limited (JLL).
Jet Airways eventually wiped out the cash advance to JLL from its records. The ED further claimed that Goyal had compensated close relatives and housekeepers in the neighborhood of 9.46 crore.