ED searches Jet Airways founder Naresh Goyal's premises in Delhi, Mumbai

Published: Aug 23, 2019, 15:48 IST | PTI | New Delhi

The searches are being carried out under the provisions of the Foreign Exchange Management Act (FEMA), sources said

Naresh Goyal
Naresh Goyal

The Enforcement Directorate conducted searches at the premises of Jet Airways founder Naresh Goyal on Friday in connection with a case of alleged contravention of the foreign exchange law, officials said.

According to the officials, 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 the former, are known to have been searched.

Proceedings under the FEMA are said to be civil in nature. Goyal was also questioned by the Serious Fraud Investigation Office (SFIO) on Thursday in Mumbai in connection with allegations of some financial irregularities.

Officials further 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 defunct 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 mentioned 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.

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