CBI Searches At Jet Airways Office, Naresh Goyal's Home In Connection With Rs 538-Crore Bank Fraud Case

The CBI searches were spread across residences and offices of Goyal, his wife Anita, and former Jet Airways director Gaurang Ananda Shetty

The Central Bureau of Investigation (CBI) on Friday conducted searches at seven locations, including the premises of Jet Airways and its founder Naresh Goyal in Mumbai in connection with an alleged Rs 538-crore fraud case in Canara Bank, officials told news agency PTI.

The central agency searches were spread across residences and offices of Goyal, his wife Anita, and former airline director Gaurang Ananda Shetty. The agency has registered a new case of alleged bank fraud of Rs 538 crore on a complaint from Canara Bank, they said.

The allegations pertain to alleged diversion of funds among other irregularities, they said. The company was in the process of revival after Jalan Kalrock Consortium (JKC) won the bid for Jet Airways under the insolvency resolution process at National Company Law Tribunal (NCLT). 

Operations of Jet Airways were closed back in April 2019. After flying for more than 25 years, the once-storied Jet Airways went into an insolvency resolution process and the Jalan Kalrock Consortium emerged as the winning bidder. However, the ownership transfer process has been facing headwinds for long.

The airline's air operator certificate was revalidated by aviation safety regulator DGCA in May 2022, following which it announced its plans to recommence operations in September 2022, but the relaunch was delayed.

Sanjiv Kapoor, CEO designate of grounded airlines Jet Airways, has resigned from his post. The resignation of Kapoor, who had joined Jet Airways on April 4, 2022, comes as the airline struggles to restart operations. Kapoor's departure comes on the heels of the resignations of accountable manager PP Singh and company secretary Neeraj Manchanda earlier this week.

The development comes as the ownership transfer of the airline under the insolvency resolution plan is facing hurdles over differences between the winning bidder and lenders.

Meanwhile, another Indian airlines, Go First has also run into trouble after a severe fund crisis. On May 2, Go First suspended all flights for three days beginning May 3, claiming that half its fleet was grounded due to a lack of engine supplies from Pratt & Whitney and a severe cash crunch. On May 4, it extended the suspension by another 10 days starting May 6. The airline has also filed for insolvency in the NCLT.