The Enforcement Directorate (ED) on Friday (23 August) carried out major searches and raids on the residence and official premises of beleaguered aviation tycoon Naresh Goyal, reports Economic Times.
Searches are being carried out to unravel the alleged malpractices with respect to foreign investment in the loyalty programme of presently de-funct Jet Airways, founded by Goyal. The raids follow interrogation of senior executives of the airline in the month of May by the ED.
The investigation is being carried out to probe an investment of about Rs 900 crore by Etihad Airways PJSC into Jet Privilege Pvt Ltd (JPPL), which handled the frequent-flyer programme of the airline. Etihad was the airline's strategic partner, with shareholding in the company.
The federal investigative body is probing if Goyal had taken requisite approvals from the Foreign Investment and Planning Board (FIPB) before pursuing the said investment given the laws of the land do not permit a foreign investment of above 49 per cent in a company while Etihad's shareholding stands at 50.1 per cent in the present.