Sept 2 (Reuters) – An Indian courtroom on Saturday determined that Jet Airways (JET.NS) founder Naresh Goyal will stay in India’s monetary crime company’s custody till Sept. 11, the company mentioned in a press assertion.

The Enforcement Directorate (ED), which investigates monetary crimes in India, arrested Goyal late on Friday.

Jet Airways didn’t instantly reply to a request for remark. Goyal hasn’t commented publicly on the case previously.

The case pertains to an alleged 5.38 billion Indian rupees ($65.06 million) bank fraud case filed by state lender Canara Bank (CNBK.NS). The losses to a consortium of 9 lenders is way bigger, at 59.6 billion Indian rupees ($720.78 million), ED mentioned.

The financial institution had filed a grievance in May in opposition to the airline, Goyal, his spouse and a former airline director for “causing wrongful loss” to the lender.

Goyal based Jet Airways in 1992 however shut down operations in April 2019 after working out of money. The airline was the second largest provider in India by market share.

In its assertion the company mentioned that below Goyal’s management the airline siphoned off funds to abroad entities in Dubai, Ireland and different tax havens together with the British Virgin Islands.

“(The) ED investigation revealed that in the garb of professional and consultancy fees, funds to the tune of 10 billion Indian rupees ($120.94 million) went towards the personal expenses of Naresh Goyal and his family members,” the assertion mentioned.

($1 = 82.6887 Indian rupees)

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