New Delhi: The Enforcement Directorate on Friday conducted searches at the premises of Jet Airways founder Naresh Goyal in connection with a case of alleged contravention of the foreign exchange law, officials said.
They said 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 Maharashtra’s capital, are being searched, they said.
Proceedings under the FEMA are civil in nature.
Goyal was questioned by the Serious Fraud Investigation Office (SFIO) on Thursday in Mumbai in connection with allegations of some financial irregularities.
Officials 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.
Also read: Banks killed Jet Airways with kindness
We are deeply grateful to our readers & viewers for their time, trust and subscriptions.
Quality journalism is expensive and needs readers to pay for it. Your support will define our work and ThePrint’s future.
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 closed down 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 had said 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.
News media is in a crisis & only you can fix it
You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.
You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.
We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.
At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.
This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.
If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.