Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud

Post Published June 18, 2024

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Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Supreme Aviation Owner's Arrest Sparks Outrage





The arrest of Supreme Aviation Owner Ammeet Agarwal has sparked outrage, as the company faces allegations of bank fraud worth INR45 million.

The Economic Offences Wing is investigating the matter, which involves fraudulent transactions related to aircraft.

This event underscores the concerns over financial irregularities within the aviation sector.

While Supreme Aviation, which provides pilot training services, faces legal repercussions, the National Company Law Appellate Tribunal has directed the company to settle outstanding employee dues, and a related petition before the Supreme Court has been dismissed.

The arrest of Supreme Aviation's owner, Ammeet Agarwal, has sparked widespread outrage, as the allegations of bank fraud worth INR45 million (USD538,606) have cast a shadow over the company's operations and the broader aviation industry in India.

The Economic Offences Wing (EOW) is investigating the matter, focusing on the company's involvement in fraudulent transactions related to aircraft, highlighting the complexity and potential vulnerabilities within the aviation sector.

Supreme Aviation, which provides pilot training services, is also facing legal challenges, as the National Company Law Appellate Tribunal has directed the company to settle outstanding employee dues, further exacerbating the company's financial distress.

Interestingly, a petition filed before the Supreme Court challenging the order to settle employee dues has been dismissed, underscoring the seriousness of the legal proceedings against the company.

The ownership change and financial troubles faced by Supreme Aviation have posed significant challenges for the company's stability and operations, raising concerns about the broader impact on the industry and the flying public.

This scandal comes at a time when the aviation industry is grappling with various issues, as evident from the lawsuit filed in Singapore against VietJet Aviation and its founder over the alleged conspiracy to block the release of four leased planes worth about US$200 million, further highlighting the complexities and vulnerabilities within the sector.

What else is in this post?

  1. Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Supreme Aviation Owner's Arrest Sparks Outrage
  2. Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Jet Airways Founder Embroiled in Money Laundering Scandal
  3. Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Canara Bank at the Center of Alleged Rs 538 Crore Fraud
  4. Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Enforcement Directorate Intensifies Crackdown on Financial Crimes
  5. Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Kalrock-Jalan Consortium Faces Legal Battle Over Unpaid Dues

Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Jet Airways Founder Embroiled in Money Laundering Scandal





Naresh Goyal, the founder of the defunct Jet Airways, has been arrested by India's Enforcement Directorate (ED) in a money laundering case linked to an alleged bank fraud of Rs 538 crore at Canara Bank.

The case stems from a complaint filed by the Central Bureau of Investigation (CBI) in May 2021, which accused Goyal, his wife Anita, and former company executives of financial irregularities.

The ED has seized properties worth 5.38 billion rupees as part of its ongoing investigation into the money laundering allegations against Jet Airways and Goyal.

This development comes amidst the broader aviation scandal rocking India, where the owner of Supreme Aviation, Ammeet Agarwal, was also recently arrested for alleged bank fraud worth INR45 million.

The Supreme Court has dismissed a petition challenging the order to settle outstanding employee dues, further exacerbating the financial troubles within the industry.

Naresh Goyal, the founder of Jet Airways, was arrested by the Enforcement Directorate (ED) in September 2021 for his involvement in an alleged bank fraud of Rs 538 crore at Canara Bank.

The money laundering case against Goyal is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in May 2021, which also named Goyal's wife Anita and some former Jet Airways executives.

Interestingly, the ED had previously arrested Goyal under the Prevention of Money Laundering Act (PMLA) following extensive questioning at the central agency's office.

Investigations revealed that the borrowed funds were transferred to overseas accounts and used for purposes other than what they were intended for, leading to the money laundering allegations.

As part of the probe, the ED has seized properties worth 38 billion rupees (nearly $65 million) belonging to Jet Airways and Goyal.

Goyal was sent to 14-day judicial custody by a court in connection with the alleged fraud, highlighting the seriousness of the charges against him.

The case has also implicated Goyal's wife, Anita, who is being investigated alongside her husband, further complicating the legal proceedings.


Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Canara Bank at the Center of Alleged Rs 538 Crore Fraud





Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud

Canara Bank has been embroiled in a massive fraud case involving aviation tycoon Naresh Goyal, the founder of Jet Airways.

The bank accused Goyal of fraudulently obtaining credit limits and loans totaling Rs 84,886 crore, with Rs 53,862 crore remaining outstanding.

The Enforcement Directorate (ED) has filed a chargesheet against Goyal and five others in connection with the fraud, and the Central Bureau of Investigation (CBI) conducted raids related to the alleged banking scam.

The alleged fraud at Canara Bank is estimated to be a staggering Rs 538 crore, highlighting the massive scale of the financial irregularities.

The Enforcement Directorate (ED) has seized properties worth Rs 538 crore from Jet Airways' founder Naresh Goyal as part of its ongoing investigation into the money laundering allegations.

The Central Bureau of Investigation (CBI) conducted extensive searches at seven locations, including the residences and offices of Goyal, his wife Anita, and former Jet Airways director Gaurang Ananda Shetty, underscoring the breadth of the investigation.

Canara Bank had sanctioned credit limits and loans totaling Rs 86 crore to Jet Airways, with Rs 62 crore remaining outstanding, indicating the bank's significant exposure to the now-defunct airline.

The ED's money laundering case against Goyal and others stems directly from the CBI's First Information Report (FIR), highlighting the close coordination between India's top investigative agencies.

Naresh Goyal, the once-powerful aviation tycoon, has been remanded to 14-day judicial custody, a significant development that could have far-reaching implications for his future.

The alleged fraud case has also implicated Goyal's wife, Anita, who is being investigated alongside her husband, adding to the complexities of the legal proceedings.

The Canara Bank fraud case is part of a broader aviation scandal rocking India, with the recent arrest of Supreme Aviation's owner, Ammeet Agarwal, for alleged bank fraud worth INR45 million, underscoring the industry's vulnerabilities.


Aviation Scandal Rocks India Supreme Aviation Owner Arrested for Alleged Bank Fraud - Enforcement Directorate Intensifies Crackdown on Financial Crimes





The Enforcement Directorate (ED) has significantly ramped up its efforts to combat financial crimes in India.

The agency has arrested several high-profile individuals, including the owner of Supreme Aviation and the founder of Jet Airways, on allegations of bank fraud and money laundering.

The ED's aggressive actions underscore the government's determination to crack down on corruption and financial irregularities, particularly in the aviation sector.

The Enforcement Directorate (ED) has seized over ₹5,500 crore from the bank accounts of Chinese smartphone maker Xiaomi, alleging that the funds were illegally remitted abroad under the guise of royalty payments.

The ED's investigation into the Jet Airways fraud case revealed that the airline's founder, Naresh Goyal, allegedly diverted loan proceeds of ₹62 crore from Canara Bank to purchase properties overseas, including in Dubai and the UK.

The agency has also arrested Hemant Soren, the former Chief Minister of Jharkhand state, on allegations of corruption, highlighting the ED's widening crackdown on financial crimes across sectors.

As of 2022, the ED had registered 3,110 cases under the Prevention of Money Laundering Act (PMLA) and 12,233 cases under the Foreign Exchange Management Act (FEMA) in the past three financial years.

The ED's investigation into the alleged corruption in the purchase of Pilatus jets by the Indian Air Force has uncovered a complex web of financial irregularities, underscoring the agency's commitment to tackling high-profile cases.

The agency's arrest of P Sarath Chandra Reddy, an entrepreneur, in connection with an alleged bank fraud case, demonstrates its focus on cracking down on financial crimes, regardless of the perpetrator's stature.

The ED's seizure of ₹5,521 crore from Xiaomi's bank accounts under FEMA is one of the largest such actions taken by the agency, highlighting its ability to uncover and tackle large-scale financial crimes.

The agency's investigation into the Supreme Aviation case, where the owner, Ammeet Agarwal, was arrested for alleged bank fraud worth ₹45 million, showcases its commitment to pursuing financial crimes within the aviation sector.

Despite criticism that the ED is being used as a "weapon" by the Prime Minister's government to target opposition politicians, the agency has maintained that its actions are driven by evidence and a commitment to upholding the law.






The Kalrock-Jalan Consortium, the new owners of Jet Airways, are facing a legal battle over unpaid dues to the airline's employees.

The dispute is over the Consortium's obligation to pay provident fund and gratuity amounting to INR 2500 million, which the Supreme Court has dismissed their appeal to stay.

The Consortium plans to move to the Supreme Court against the NCLAT's order, while the Supreme Court has asked them to clarify how much they have paid towards the employees' dues.

The Kalrock-Jalan Consortium, the new owners of Jet Airways, are facing a legal battle with the airline's lenders, including the State Bank of India, over unpaid dues amounting to INR 2500 million.

The National Company Law Appellate Tribunal (NCLAT) had previously ruled in January 2023, allowing the Consortium to take over Jet Airways, but this decision sparked the ongoing legal battle.

The Supreme Court dismissed the Consortium's appeal to stay the NCLAT's order directing them to pay the provident fund and gratuity dues to Jet Airways' former employees.

The Consortium has argued that it does not have the necessary funds to pay the outstanding dues, which has further intensified the legal dispute.

The NCLAT has upheld the transfer of Jet Airways' ownership to the Kalrock-Jalan Consortium, despite the ongoing legal challenges.

The Consortium plans to move to the Supreme Court against the NCLAT's order to pay the employee dues, highlighting the persistent nature of the legal battle.

The Supreme Court has asked the Consortium to provide details on how much they have paid towards the employees' provident fund and gratuity dues.

The legal battle between the Consortium and Jet Airways' lenders has been further complicated by the lenders' appeal against the Supreme Court's rejection of their plea against the sale of three Jet Airways' aircraft.

The NCLAT's decision to uphold the transfer of Jet Airways' ownership to the Kalrock-Jalan Consortium has been a significant milestone in the airline's resurrection, despite the ongoing legal challenges.

The Kalrock-Jalan Consortium's ability to navigate these legal hurdles and fulfill its obligations to Jet Airways' employees and lenders will be crucial in determining the success of its efforts to revive the once-prominent Indian airline.

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