Jet Airways founder Naresh Goyal has sought discharge from an Enforcement Directorate money-laundering case, arguing that the Central Bureau of Investigation has not filed a chargesheet nearly three years after registering an FIR in the alleged ₹538 crore loan siphoning case. The ED has opposed the plea, maintaining that the absence of a CBI chargesheet cannot by itself justify Goyal’s discharge from the case.
Goyal, 77, has argued that the CBI investigation has not reached a conclusion establishing that he committed an offence or that the funds examined by the ED constitute proceeds of crime. The ED, however, has described Goyal, who was the non-executive chairman of Jet Airways, as the airline’s “ultimate controlling mind”.
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Goyal Questions Basis of Money-Laundering Case
The CBI registered an FIR on May 3, 2023, following a complaint by Canara Bank over an alleged ₹538.62 crore loan-related fraud involving Jet Airways. The bank alleged that Goyal and others diverted loans meant for the airline’s operations for personal purposes, including the purchase of properties in India, London and Dubai.
Within days of the CBI case, the ED initiated proceedings based on the CBI FIR as the predicate offence and began investigating allegations that money had been laundered into offshore accounts.
In his discharge plea, Goyal has argued that the CBI is still investigating the FIR and has not reached any conclusion that he committed a crime or that the funds involved represent proceeds of crime. He has maintained that a valid predicate offence must first exist for a prosecution under the Prevention of Money Laundering Act to continue.
The plea also points out that no public servant has been named in the case despite the CBI invoking provisions of the Prevention of Corruption Act.
Goyal has further denied siphoning loan funds. His plea states that a consortium of lenders has already initiated appropriate proceedings for recovery of the alleged debts. He has attributed Jet Airways’ financial difficulties to factors beyond his control, including competition from low-cost airlines and rising aviation fuel prices.
ED Calls Goyal Jet Airways’ ‘Ultimate Controlling Mind’
The Enforcement Directorate has opposed Goyal’s request for discharge and argued that the absence of a CBI chargesheet does not provide sufficient grounds to terminate the money-laundering proceedings against him.
According to the ED, the alleged conduct involved corporate funds being channelled into offshore trusts and related-party accounts while being presented as legitimate business expenditure.
“The actions of the accused strike at the very foundation of the nation’s financial health, demonstrating a calculated bleeding of corporate assets into offshore trusts and related-party accounts under the guise of legitimate business expenditures,” the ED said in its response.
Goyal was arrested by the ED in September 2023. He was granted bail in 2024 on medical grounds. His latest plea states that he continues to suffer from health problems and has also been emotionally affected following the death of his wife, Anita Goyal, in 2024.
Goyal has disputed the allegations concerning the use of the Canara Bank facility. According to his plea, of the ₹538.62 crore facility extended by the bank, ₹365.57 crore was non-fund based and consisted of letters of credit that were paid directly to vendors. He has said the remaining amounts went towards payments to oil companies and airport operators.
The ED, however, has alleged that funds were used for Goyal’s personal benefit through inflated expenses, including expenditure shown towards the airline’s operations.
Jet Airways Assets Expected to Repay Creditors
Jet Airways suspended operations in 2019, leaving its employees without jobs as the airline’s financial condition deteriorated.
Goyal’s plea has also referred to liquidation proceedings initiated before the National Company Law Tribunal. It states that liquidation was ordered in 2024 and that the sale of Jet Airways assets, including aircraft, land, buildings, vehicles and hangars, is expected to realise more than ₹3,500 crore.
According to Goyal, the proceeds from the sale of these assets will be used towards repayment of the airline’s debts.
His discharge plea has placed the absence of a CBI chargesheet at the centre of the legal challenge to the ED proceedings. While Goyal argues that the money-laundering case cannot continue without an established predicate offence, the ED maintains that the continuing CBI investigation does not amount to a clean chit and cannot, on its own, justify his discharge.
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About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
