Serious Fraud Investigation Office Begins Probe Into Alleged GSA Model Of Siphoning Off Funds By Jet Airways Founder

The Serious Fraud Investigation Office (SFIO) has begun to probe into the “general sales agents” (GSA) model of Jet Airways.

The SFIO has found that the company’s vast network of sales agents across the globe was not independent of Jet Airways and several of these entities were linked to its founder, Naresh Goyal.

Allegedly, Goyal's general sales agent Jet Airways Travels was a front agency of Jet Airways in several companies and he allegedly used such GSA firms to siphon off funds, according to investigators.

The siphoned off money has been shown as outgoing payments to these sales agents but in many case, it was just a front for the company itself. There are many irregularities under investigation, according to investigators.

In July this year, the government had ordered an investigation into the alleged mismanagement of funds at Jet Airways, which halted operations in April this year after running out of cash.

It may be recalled that the Ministry of Corporate Affairs (MCA) had ordered SFIO to carry out the investigation.

The order refers to alleged siphoning off of funds and unspecified financial irregularities at Jet Airways, which was once India’s largest private airline, but did not include details on the allegations or name any individuals.

In September this year, the Enforcement Directorate (ED) had questioned Goyal in a case of an alleged contravention of the foreign exchange law.

This was the first time that the central agency grilled him after it conducted searches against him in 2018.

Earlier, Goyal's statement had been recorded under the Foreign Exchange Management Act (FEMA).