The Bombay High Court on Tuesday rejected the plea filed by Jet Airways’ founder Naresh Goyal challenging his arrest by the Enforcement Directorate (ED) in the Rs 538 crore Canara Bank loan default case.

Holding that Goyal’s petition seeking a writ of  habeas corpus cannot be entertained, a HC division bench of Justices Revati Mohite Dere and Gauri Godse noted: “... it is always open for the petitioner to avail of other statutory remedies, as permissible in law to him, vis-a-vis other prayers raised in this petition”.

Averring that it was restricting itself to prayer seeking a writ of habeas corpus, the HC bench said: “It is also pertinent to note, that the competence and jurisdiction of the Enforcement Directorate and of the learned Special Judge, PMLA respectively, have not been challenged”.

“We make it clear, that the observations made in this order, are restricted to the challenge before us i.e. maintainability of the petition seeking a writ of habeas corpus and as such keep all contentions of the petitioner open, on all other points raised in this petition,” the Judges observed, as they disposed off Goyal’s petition.  

Having registered a case against Goyal based on a first information report (FIR) of the CBI which itself was based on a complaint by Canara Bank for an alleged fraud involving Rs 7,000 crore, the ED had recorded his statement at his Delhi residence, flown him from Mumbai, where he was arrested on the night of September 1,  2023.

Goyal had contested the arrest, saying that the grounds of his arrest were not furnished to him and that his detention was beyond 24 hours, which were never raised by the petitioner or his counsel, both, at the time of the first remand as well as the second remand

On its part, Canara Bank alleged that Goyal along with his wife Anita Goyal and other public officers had cheated, conspired and indulged in a criminal breach of trust against the bank. Their default allegedly caused a wrongful loss of R. 538 crores to the bank, the complaint stated.

Subsequently Goyal approached the High Court challenging his arrest on the ground that it was illegal and arbitrary.

Among other things, Goyal told the court that the orders placing him under ED custody first and judicial custody subsequently were without application of mind.

The petitioner said that the ED had failed to make out any grounds for arrest and that there could have been no reasonable belief on its part to believe  that he committed laundering.

Goyal told the high court that any action taken by Canara Bank pursuant to the master directions of the RBI was stayed by the High Court. Hence no further action can be taken.

He urged the court to quash the remand orders and his release from judicial custody considering his advanced age.