Bombay High Court Extends Jet Airways Founder Naresh Goyal's Temporary Bail In Rs 538 Crores Money Laundering Case By Four Weeks

The Bombay High Court has extended by four weeks the temporary bail granted to Jet Airways founder Naresh Goyal in a money laundering case arising out of alleged loan default of Rs. 538 Crores given to Jet Airways by Canara Bank.

Justice NJ Jamadar passed the order today after Goyal submitted an affidavit stating that his doctor has suggested him to undergo a Laparoscopic Fundoplication surgery, and that he proposed to undergo the same within four weeks, and as soon as his pre-operational surgical fitness is confirmed by his doctors.

Goyal has filed the present application seeking bail on both merits and medical grounds. After extending his interim bail today, the court kept the matter pending for consideration on merits.

Goyal in his application has contended that he should be granted bail on as he is battling life threatening conditions and has recently lost his wife. He said that he has not been able to properly grieve her loss which has impacted his mental and physical health. he has stated that he is sick and infirm and to incarcerate him when he is mentally, emotionally and physically incapacitated would violate his right under Article 21 of the Constitution. He stated that he was not able to undergo required treatment and they were exploring cutting edge treatment abroad for his wife.

He has further contended that he was not managing the day-to-day operations of Jet Airways singlehandedly, and the allegations against him are false and made with the intention of creating a negative image of him and the management of Jet Airways.

In May this year, the court in Goyal's earlier bail application had granted interim bail for two months observing, "The broad submission that since the applicant has got the best of the treatment, he does not deserve to be released on bail, loses sight of the precious value of personal liberty. To accept such a broad proposition that once a person gets the requisite treatment, he does not deserve bail, howsoever critical his health condition may be, would defeat the legislative intent of enacting the proviso and render the proviso otiose."

The proviso to Section 45(1) of the Prevention of Money Laundering Act (PMLA) empowers the Court to release a person accused of an offence on bail if such a person is sick, infirm, a woman, or under 16 years of age.

The court had observed, "the age of the applicant, the disease he is suffering from, the treatment recommended for the said disease, other ailments the applicant is suffering from and the situation in life brought about by the life-threatening disease the wife of the applicant is suffering from, cumulatively justify exercise of discretion vested in the Court under the proviso to section 45(1) of PMLA."

Goyal was arrested by the ED on September 1, 2023, on charges of money laundering amounting to Rs 538.62 crore related to Jet Airways. He was denied permanent bail on medical grounds by a special PMLA court on April 10, 2024, leading him to approach the High Court.

Goyal's earlier plea had emphasized that pre-trial arrest under the PMLA aims to assist in the investigation and prevent evidence tampering but must be balanced with the accused's basic human rights. The plea highlighted that he and his wife were suffering from cancer. He contended that denying bail was inhumane, given their health conditions, and that he needed to explore alternative treatments and seek second opinions.

After considering the arguments, the HC had decided to grant bail for two months. Goyal's wife passed away a few days after he was granted bail.

Previously, in February, a Special PMLA Court denied Goyal interim bail on medical grounds but allowed hospitalization for cancer treatment. Last year, the HC also refused to quash Goyal's arrest.