ED questions Jet founder Naresh Goyal in FEMA case

Mumbai: The Enforcement Directorate (ED) on Thursday questioned Jet Airways founder Naresh Goyal, in connection with alleged violations of the foreign exchange law in an equity deal in a company that operated the airline’s loyalty and rewards programme.
In 2014, UAE-based Etihad Group had bought a 50.1% stake in Jet Privilege Pvt Ltd (JPPL), which was then hived off as an independent entity. Jet Airways holds 49.9% of JPPL. The ED is trying to ascertain whether Etihad had received the nod from the now-defunct Foreign Investment Promotion Board for the investment.

According to people in the know, Goyal was questioned at the ED’s Mumbai office on issue related to restructuring of the airline and expenses which were “deemed” fictitious. He was also confronted with documents seized by the agency during the raids it carried out on August 23 at multiple places, including his residence and offices, they said.

The ED has confronted Goyal also with documents about 19 privately held companies of which 14 are registered in India and five abroad. “It is gathered that his companies executed several colourable transactions under the guise of selling and distribution expenses and other operating expenses.

Commission and other fictitious expenses were booked at an unrealistically high price, thereby projecting huge losses.

Goyal was asked on the same,” said a person in the know.