The Enforcement Directorate has opposed Goyal’s discharge plea, alleging that “he orchestrated a systemic fraud, bleeding a premier national airline to death, defrauding public sector banks and enriching himself and his family through a sophisticated global laundering network”.
The 77-year-old businessman was arrested by the ED in September 2023. The agency has alleged that he laundered money by siphoning off loans given to Jet Airways by Canara Bank to the tune of Rs 538.62 crore.
Goyal, who is currently on medical bail, said in his plea that Jet Airways (India) Limited (JIL) faced significant financial challenges because of “adverse macroeconomic conditions” beyond its control, including escalating aviation fuel prices, foreign exchange volatility and intense competition.
The airline was forced to temporarily suspend operations in April 2019 because it was unable to service its mounting financial obligations, the plea said.
“However, this situation was solely attributable to adverse market conditions, and not due to any fraudulent conduct by the applicant (Goyal) or other members of the management,” the application said.
Goyal maintained that JIL’s financial distress was “the product of commercial and industry conditions, not evidence of laundering”. He also denied the ED’s allegations that funds were siphoned off through General Sales Agents (GSAs).
The plea said the use of GSAs is a standard practice for ticket sales and market expansion, adding that all related payments were approved by the JIL board and disclosed in financial statements.
On the alleged diversion of a Rs 538.62 crore loan taken from Canara Bank, Goyal’s plea said the figure represented the bank’s total outstanding claim rather than an amount disbursed to him.
Of this amount, Rs 365.57 crore consisted of letters of credit and bank guarantees issued directly to vendors for aircraft leasing and fuel, the plea said.
The ED, in its reply, claimed that it had established “through incontrovertible documentary and testimonial evidence, a prima facie case of extraordinary magnitude”.
The central agency has asked the court to dismiss Goyal’s plea and continue proceedings for framing of charges, which would pave the way for a trial.
The matter will next be heard on September 9.
The ED’s money laundering case stems from an FIR registered by the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former executives over an alleged bank fraud.
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