ED Raids Jet Airways Founder Naresh Goyal's Properties In Delhi, Mumbai Over Alleged FDI Violations

The Enforcement Directorate (ED) on conducted search operations at the residence of the grounded Jet Airways founder Naresh Goyal in connection with a case of alleged contravention of the foreign exchange law.

The probe agency searched around 12 more locations in Mumbai and Delhi. (File Photo/ Getty)

New Delhi: The Enforcement Directorate (ED) on conducted search operations at the residence of the grounded Jet Airways founder Naresh Goyal in connection with a case of alleged contravention of the foreign exchange law. According to reports, the probe agency also searched around 12 more locations in Mumbai and Delhi. They said the searches are being carried out under the provisions of the Foreign Exchange Management Act (FEMA) and are aimed at gathering additional evidence. "About a dozen premises in Mumbai and Delhi, including Goyal's residence in Maharashtra's capital, are being searched," ED said. Proceedings under the FEMA are civil in nature. Goyal was even questioned by the Serious Fraud Investigation Office (SFIO) on Thursday in Mumbai in connection with allegations of some financial irregularities. Officials said the federal agency is also looking at the airline's stake in Jet Privilege Pvt Ltd (JPPL), set up in 2012, as part of the latest searches. JPPL is an independent entity in which Jet Airways has 49.9 per cent stake and is part of the Etihad Group. It was set up to manage and further develop JPMiles, a loyalty and rewards programme. A few executives of the now closed down airline were questioned by the ED in this case in the past as part of ascertaining if FEMA and RBI guidelines were followed while inking this deal. A full-service carrier, Jet Airways shuttered operations on April 17 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. On Friday, the Delhi High Court allowed Goyal to withdraw his petition for permission to travel abroad. In a fresh application to the court, Goyal said the SFIO has started its probe into a case of alleged fraud of Rs 18,000 crore and he was extending full cooperation to the agency in the investigation and accordingly, was and not pressing for the permission to go abroad at this stage. The Central government's Standing Counsel Ajay Digpaul, however, told the court that Goyal was not cooperating in the investigation. Besides seeking permission to travel outside India, Goyal had also challenged a look out circular (LOC) issued against him on the ground that as on May 25, when he was off-loaded from a flight to Dubai, no ECIR/FIR was registered against him. In his plea, Goyal said he came to know of the LOC on May 25 when he and his wife Anita were off-loaded from a flight to Dubai with an onward connection to London. He said when he had filed the petition in July, he was in an urgent need to travel abroad and thereafter, he received summons from SFIO for recording of statement regarding the investigation which has been initiated. Naresh and his wife Anita Goyal had resigned from the board of Jet Airways, which the former founded 26 years ago, in March following a debt restructuring plan. He had also resigned as the airline's chairman. Jet Airways is facing insolvency proceedings. (With agency inputs)