India's Enforcement Directorate arrests Jet Airways founder Naresh Goyal - source (updated)

Jet Airways (India)

01/09/2023 19:44

(Adds details from local media reports and background
throughout)
       Sept 1 (Reuters) - India's financial crime fighting
agency on Friday arrested Jet Airways  JET.NS  founder Naresh
Goyal, an Enforcement Directorate source said, in a case local
media said was related to an alleged 5.38 billion Indian rupees
($65.06 million) money laundering case linked to Canara Bank. 
    Goyal was taken into custody under the Prevention of Money
Laundering Act (PMLA), following a long session of questioning
at the ED's office in Mumbai, according to local media reports.
    Canara Bank  CNBK.NS  had filed a complaint in May against
the airline, Goyal, his wife and a former airline director for
"causing wrongful loss" to the lender.
    Jet Airways and the ED could not be immediately reached for
comment. 
    Once India's biggest private airline, Jet ran out of cash in
April 2019 and filed for bankruptcy. It was supposed to resume
operations by the first quarter of 2022 under its new owners.
    However, it is deadlocked with creditors over the resolution
plan to lift the airline out of bankruptcy.

($1 = 82.6887 Indian rupees)

 (Reporting by Aditya Kalra in Delhi and Kanjyik Ghosh in
Bengaluru; Editing by Shounak Dasgupta and Krishna Chandra
Eluri)
 ((Kanjyik.Ghosh@thomsonreuters.com))