Bombay High Court seeks response from ED on plea by Naresh Goyal against his arrest in loan default case

The Bombay High Court Wednesday issued notice to the Enforcement Directorate (ED) on a petition filed by Jet Airways founder Naresh Goyal challenging his arrest in the loan default case..A division bench of Justice Revati Mohite Dere and Gauri Godse told Goyal that it cannot pass any order until ED is given time to reply to the plea. The bench granted ED 2 weeks time to reply and posted the matter for hearing on October 6. Meanwhile, Goyal was given the liberty to approach the special court under the Prevention of Money Laundering Act (PMLA) for bail. .The Central Bureau of Investigation (CBI) had registered an FIR against Goyal on May 3, 2023 for suspected bank fraud. The complaint by Canara Bank claimed that Goyal had cheated, and misappropriated funds and caused a wrongful loss of ₹538 crores to the bank. Based on this FIR, ED registered an Enforcement Case Information Report on May 10, 2023. The agency summoned Goyal for appearance on September 1. After a long interrogation, the agency placed Goyal under arrest.He was produced before the special court which remanded him to ED custody till September 14.On September 14, he was remanded to judicial custody for 2 weeks..In the petition filed through Naik Naik & Co, Goyal claimed that the arrest was arbitrary and unlawful. He also alleged that the orders placing him under ED custody first and judicial custody subsequently were without application of mind. Goyal submitted that ED failed to make out any grounds for arrest and that there could have been no reasonable belief on the part of ED to believe Goyal committed laundering. Goyal also contended that any action taken by Canara Bank pursuant to the master directions of the RBI was stayed by the High Court. Hence no further action can be taken..The former promoter of Jet Airways, therefore, moved the court seeking quashing of the remand orders and his release from judicial custody considering his advanced aged. The Court, however, concluded that no orders can be passed till ED is given an opportunity to reply. Accordingly time was granted. .Senior Advocates Amit Desai and Aabad Ponda along with advocates Karan Kadam briefed by Ameet Naik and Abhishek Kale from Naik Naik & Co. appeared for Goyal.Advocate Hiten Venegaonkar appeared for ED.

Bombay High Court seeks response from ED on plea by Naresh Goyal against his arrest in loan default case

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