Mumbai - According to a press statement from the Indian financial crime agency, an Indian court has ruled that Naresh Goyal, the founder of Jet Airways (JET.NS), will remain in the custody of India's Enforcement Directorate (ED) until September 11. The ED, responsible for investigating financial crimes in India, arrested Goyal late on Friday, seeking a 14-day custody period.

In a message posted on X, the ED announced, "ED has arrested Naresh Goyal, ex-Chairman of Jet Airways (I) Ltd. on 1.09.2023 under the provisions of PMLA, 2002 in Rs 538 Crore Canara bank fraud case. He was produced before the Hon’ble PMLA Special Court, Mumbai, and the Hon’ble Court has granted ED custody for 10 days."

During a hearing in the PMLA court on Saturday, Goyal's lawyer argued that due to Goyal's health issues, including back and spine problems, he should be allowed access to his medications, a bed, and home-cooked food while in ED custody, a request the court granted.

Naresh Goyal was arrested by the ED on allegations of defrauding Canara Bank of Rs 538 crore, based on an FIR filed by the Central Bureau of Investigation (CBI) in May of the current year. The FIR listed Jet Airways (India) Limited, Naresh Goyal, his wife Anita Naresh Goyal, Gaurang Ananda Shetty, and unidentified public servants and private individuals as accused parties.

The FIR detailed allegations of cheating, criminal conspiracy, criminal breach of trust, and criminal misconduct by M/s Jet Airways (India) Ltd., Naresh Jagdishrai Goyal, Anita Naresh Goyal, Gaurang Ananda Shetty, and unknown public servants and others, resulting in a wrongful loss of Rs 538.62 crores to Canara Bank.

It further revealed that a forensic audit of Jet Airways (India) Ltd.'s accounts unveiled fraudulent activities such as the diversion and siphoning of funds.

Naresh Goyal established Jet Airways in 1992, but the airline ceased operations in April 2019 due to financial difficulties, despite being the second-largest carrier in India by market share.