Mumbai, Sep 2 (IANS): The Enforcement Directorate (ED) has contended that Jet Airways founder Naresh Goyal -- who was arrested late on Friday -- had allegedly diverted around Rs 9.50 crore from a public sector bank loan to clear off his private loans.

Producing Goyal before a special PMLA court here on Saturday, the ED said that his daughter Namrata Goyal’s production house also got money from Jet Airways accounts to pay salaries and other commitments.

On Friday, the ED swooped on Goyal’s home, picked him up for questioning and late in the night placed him under arrest for alleged money-laundering linked with a Canara Bank loan fraud case of Rs 538 crore between 2011 and 2019.

The money-laundering case arose from a Central Bureau of Investigation (CBI) FIR filed against Goyal, his wife Anita, and others in connection with the alleged fraud perpetrated with Canara Bank.

The Canara Bank had complained that it had given loans and credit limit to Goyal’s Jet Airways worth Rs 849 crore, of which over Rs 538 crore was outstanding, and then declared a fraud in July 2021.

The investigation also revealed that private and personal expenses of the Goyal family and staff salaries were paid through the airline accounts, and funds were siphoned off through Jet Lite by Jet Airways Ltd through loans, advances and investments.

It may be recalled that the once-powerful Jet Airways which virtually ruled the skies for nearly 25 years was grounded in April 2019 owing to financial problems and heavy losses.