Naresh Goyal Denies Fraud In Jet Airways Collapse, ED Says He ‘Bled Airline To Death’

Jet Airways founder Naresh Goyal has blamed adverse market conditions for the airline’s 2019 collapse, while the Enforcement Directorate (ED) has accused him of orchestrating a systemic fraud that allegedly diverted funds and enriched his family.

Goyal, 77, made the claim in a discharge plea before a special PMLA court in Mumbai on Friday, seeking to be released from the ₹538.62 crore money laundering case. He said Jet Airways’ financial crisis was caused by rising aviation fuel prices, foreign exchange volatility and intense competition, rather than fraudulent conduct.

According to his plea, the airline’s financial distress was the result of commercial and industry conditions. Jet Airways was forced to suspend operations in April 2019 after it could no longer meet its financial obligations.

The case stems from a CBI FIR filed in May 2023 following a complaint by Canara Bank. The bank alleged that Jet Airways had defaulted on ₹538.62 crore from loans and credit facilities worth ₹848.86 crore sanctioned to the airline. The ED subsequently registered a money laundering case, alleging that funds were diverted for purposes unrelated to Jet Airways.

Goyal has denied siphoning the funds. He argued that the ₹538.62 crore figure represented the bank’s outstanding claim and not an amount directly received by him. He also said ₹365.57 crore involved letters of credit and bank guarantees issued directly to vendors for aircraft leasing and fuel.

He further denied wrongdoing involving General Sales Agents, saying their use is a standard aviation practice and that related payments were approved by Jet Airways’ board and disclosed in financial statements.

The ED has strongly opposed the discharge plea, alleging that Goyal was the “ultimate controlling mind” behind the airline and had orchestrated a wider fund diversion mechanism involving related entities. The agency alleged that money advanced to Jet Airways was routed through related entities and used for purposes other than those for which the facilities were sanctioned.

The ED has described the alleged conduct as a sophisticated laundering network that defrauded public sector banks and enriched Goyal and his family. It told the court that documentary and testimonial evidence establishes a prima facie case of extraordinary magnitude.

Goyal was arrested by the ED in September 2023 and is currently out on medical bail. He has also argued that the CBI has yet to file a chargesheet, three years after registering the FIR, and that proceeding with the ED case before completion of the underlying investigation would be premature. The ED has rejected this as a ground for discharge.

Jet Airways ceased operations in 2019, while liquidation proceedings began in 2024. The court is scheduled to hear Goyal’s plea next on September 9.