“Seizure of ₹538 Crore Worth of Properties Linked to Jet Airways in Money Laundering Probe”
In a recent court hearing, former Jet Airways Chairman, Mr. Naresh Goyal, defended the use of loans for business purposes, stating that the aviation sector relies on bank funding. The court, however, expressed concerns over the lack of transparency regarding Goyal’s financial assets.
The ongoing legal saga surrounding the financial affairs of former Jet Airways Chairman, Mr. Naresh Goyal, took an interesting turn during a recent court hearing. Citing an audit report, the Enforcement Directorate (ED) alleged that loans secured by the defunct airline were used for purposes other than the airline’s operations, including the purchase of furniture, apparel, jewelry, and properties.
Goyal, who once operated one of India’s most prominent private airlines, vehemently defended the utilization of these loans, arguing that the aviation sector heavily relies on bank funding and that these transactions could not be categorically labeled as money laundering.
Goyal, represented by his legal team consisting of Abbad Ponda, Amit Desai, and Amit Naik, clarified to the court that he had neither taken any loans in his name nor acted as a guarantor for any such loans. The defense further pointed out that a substantial portion of the bank loans acquired by Jet Airways before 2011 had been used to acquire Sahara Airlines, emphasizing the historical context of such transactions.
“This is a historical event in business. Not just Jet Airways, other airlines, too, are in a crisis. The aviation sector runs on the basis of funding from banks; all these cannot be termed as laundering,” Mr. Goyal’s lawyer asserted, underscoring the financial challenges faced by the airline industry.
However, the court expressed concerns over the lack of transparency regarding Goyal’s financial assets. According to the court, Goyal’s statements indicated a lack of cooperation in providing details of all his bank accounts, as well as his movable and immovable properties in India and abroad. This issue of non-disclosure raises questions about his financial transparency and has led to additional scrutiny in the ongoing legal proceedings.
The case underscores the challenges faced by high-profile individuals when it comes to financial transparency, especially in sectors such as aviation, where large sums of money are at stake. As the legal battle continues, it remains to be seen how this will impact the broader discourse on corporate governance and financial accountability within the Indian aviation industry.
Sources By Agencies
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