HC dismisses Jet Airways founder Naresh Goyal's plea against 'illegal' arrest by ED

In his plea, Goyal claimed his arrest was illegal as it was done without following provisions of the Prevention of Money Laundering Act (PMLA). He also challenged orders of a special court which had first remanded him in the ED's custody and thereafter in judicial custody.

The ED opposed the plea and said the arrest was done after following the due process of law.

Goyal's custody was required as he was evasive and not cooperating with the probe, it said.

The agency in its affidavit also said the petition filed by Goyal was totally false, frivolous, vexatious, bad in law and filed with an ulterior motive." The plea was merely an instrument to evade and escape the legal custody, the ED added.

Goyal is currently in judicial custody and lodged at the Arthur Road jail in Mumbai in the money laundering case linked to an alleged fraud of Rs 538 crore at the Canara Bank.

He was arrested by the ED on September 1 and produced before a special court which remanded him the agency's custody till September 14.

On September 14, Goyal was remanded to judicial custody for two weeks. On September 14, Goyal was remanded to judicial custody for two weeks.

Goyal in the plea claimed his arrest was arbitrary, unwarranted and done without the ED following proper procedure. He sought to be released immediately. The money laundering case stems from an FIR of the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former company executives of the now grounded private airline in connection with the alleged Rs 538 crore fraud case at the Canara Bank.

The FIR was registered on the bank's complaint which alleged that it sanctioned credit limits and loans to Jet Airways (India) Ltd to the tune of Rs 848.86 crore of which Rs 538.62 crore was outstanding.