ED conducts searches on Jet Airways offices, Naresh Goyal residences

Action is the part of the probe against the airline under Fema, over the signing of a $150-million deal with Etihad Airways in 2014 for a loyalty programme business

The Enforcement Directorate (ED) is conducting search operation on Jet Airways’ offices and also on it founder Naresh Goyal’s Delhi and Mumbai residences. 

The action is part of the probe against Jet Airways under the Foreign Exchange Management Act (Fema), said an ED official privy to the development.

Jet Airways has been under enforcement agency lens for alleged violation of foreign exchange regulations during the signing of a $150-million (over Rs 900 crore) deal with its strategic partner Etihad Airways in 2014 for a loyalty programme business.

In 2014, Etihad had picked up a 50.1 per cent stake in Jet’s frequent flyer programme, Jet Privilege, with the balance going to Jet.

The Registrar of Companies, under the Ministry of Corporate Affairs (MCA), has flagged off certain discrepancies in the books and instances of violation of the Companies Act. Based on the findings, SFIO has had Initiated the probe in the matter and questioned Goyal multiple times.