Winning Bizness Desk
Mumbai. The Bombay High Court has granted bail to Naresh Goyal, founder of Jet Airways, on medical grounds, as he is undergoing cancer treatment at Reliance Hospital. Goyal, who is facing charges in a money-laundering case, had requested bail citing health and humanitarian reasons. This is the second time this year that Goyal has been granted medical bail; he was also released temporarily for two months in May for cancer treatment. Goyal, who has been in custody since his arrest on September 1, 2023, is currently in Mumbai’s Arthur Road Jail. His wife, Anita Goyal, who had also been battling cancer, passed away earlier this year on May 16.
Background on Jet Airways and Financial Troubles
Naresh Goyal established Jet Airways in 1993, and the airline grew to become one of India’s largest private carriers. However, due to financial difficulties, Jet Airways halted operations in April 2019 after nearly 26 years in service. At that time, the airline owed Canara Bank Rs 538.62 crore in loans. Jet Airways had also taken credit facilities totaling Rs 848.86 crore from the bank. In 2021, Canara Bank filed a complaint alleging irregularities in Jet Airways' finances. A forensic audit revealed that the company had transferred Rs 1,410.41 crore to related companies. The investigation suggested that these transfers were made to move funds out of the company. The Goyal family was accused of using Jet Airways funds for personal expenses, including staff salaries, phone bills, and vehicle costs.
Jet Airways' Status and Efforts to Revive
Once one of India’s leading private airlines, Jet Airways ceased operations on April 17, 2019, due to mounting debts. In June 2021, the Jalan-Kalrock Consortium, a joint venture between Dubai-based businessman Murari Lal Jalan and London-based investment firm Kalrock Capital, won the bid to revive Jet Airways through the National Company Law Tribunal’s (NCLT) bankruptcy resolution process. Since then, efforts to restart the airline have been underway, but Jet Airways has not yet resumed operations. The Jalan-Kalrock Consortium aims to bring Jet Airways back to the skies, though the process is still ongoing.
