Enforcement Directorate questions Jet Airways founder Naresh Goyal in foreign exchange violation case

The Enforcement Directorate (ED) questioned Jet Airways founder Naresh Goyal on Friday in a case of an alleged contravention of the foreign exchange law, officials said. This is the first time that the central agency is grilling him after it conducted searches against him last year. Goyal’s statement has been recorded under the Foreign Exchange Management Act (FEMA) at the agency’s zonal office here, they said.

Mumbai: Former Chairman of Jet Airways, Naresh Goyal, was today questioned by Enforcement Directorate in connection with a Foreign Exchange Management Act (FEMA) case. (File pic) pic.twitter.com/65hzQwNTcU

— ANI (@ANI) September 6, 2019

It suspects that expenses at these companies were allegedly booked at fake and high costs and as a result, they “projected” huge losses. A dozen premises, including Goyal’s Mumbai residence, his group companies, their directors and offices of Jet Airways, were searched in August. According to agency sources, the businessman’s empire had 19 privately-held companies, five of which were registered abroad. [caption id=“attachment_6327671” align=“alignleft” width=“380”] Naresh Goyal, former chairman, Jet Airways. Reuters[/caption] The agency is probing charges that these firms allegedly carried out “doubtful” transactions under the guise of selling, distribution and operating expenses. A full-service carrier, Jet Airways shuttered operations on 17 April after running out of cash. A Ministry of Corporate Affairs (MCA) inspection report had found large-scale irregularities, including diversion of funds, at the airline, sources had said in July. In March, Goyal stepped down as chairman of the airline. Currently, Jet Airways is undergoing resolution process under the Insolvency and Bankruptcy Code and at least three entities have put in initial bids for the carrier. (With PTI inputs)