Jet Airways founder Naresh Goyal has been bailed by The Bombay High Court on Monday on medical grounds in the money laundering case. Goyal had sought bail citing medical and humanitarian reasons. Naresh is suffering from cancer and is undergoing treatment at Reliance Hospital.
On 1 September 2023, authorities arrested Naresh. In May this year, the court granted Naresh Goyal interim medical bail for two months for cancer treatment. Naresh is currently in Arthur Road Jail in Mumbai. On May 16 this year, Naresh Goyal’s wife, Anita Goyal, died in Mumbai after a long battle with cancer.
Understand the matter related to Jet Airways
Goyal founded Jet Airways in 1993. After 26 years, the airline shut down in April 2019 due to financial reasons. In May 2019, Goyal resigned as chairman.
At that time, Jet Airways owed Canara Bank a loan of Rs 538.62 crore. The airline had taken a credit limit and loan of Rs 848.86 crore.
Three years later, in 2021, Canara Bank alleged that a forensic audit of Jet Airways found that Jet transferred Rs 1,410.41 crore to its associated companies i.e. ‘related companies’. This was done to withdraw money from the company’s account.
The authorities accused the Goyal family of paying personal expenses—like staff salaries, phone bills, and vehicle expenses—from the Jet Airways account.
The owners closed the airline in April 2019.
It was once one of the largest private airlines in India and the airline had the status of the largest private airline in South Asian countries. Due to debt, creditors grounded the company on 17 April 2019.
Jalan-Kalrock won the bid
In June 2021, the Jalan-Kalrock Consortium won the bid for Jet Airways under the bankruptcy resolution process of the National Company Law Tribunal (NCLT). Since then, the process of revival of Jet is going on, but the airline has not been able to start till now.
This consortium is a joint company of Murari Lal Jalan and Kalrock Capital. Jalan is a Dubai-based businessman. At the same time, Kalrock Capital Management Limited is a London-based global firm working in the field of financial advisory and alternative asset management.
