BENGALURU, May 5 (Reuters) – India’s federal investigating company is looking out the premises of Jet Airways (JET.NS) and the residence of founder Naresh Goyal in Mumbai as a part of a probe right into a 5.39 billion rupee ($66 million) financial institution fraud case, a Central Bureau of Investigation (CBI) supply stated on Friday.

The searches got here days after Canara Bank (CNBK.NS) filed a grievance towards the airline, Goyal, his spouse and a former airline director for “causing wrongful loss” to the lender, in response to a May 3 first info report seen by Reuters.

Jet Airways didn’t instantly reply to a Reuters request for remark. Goyal couldn’t be instantly reached.

Canara Bank alleged that funds had been diverted for functions unrelated to the airline’s operations.

Once India’s largest non-public airline, Jet ran out of money in April 2019 and filed for chapter. It was purported to resume operations by the primary quarter of 2022 underneath its new house owners. However, it’s deadlocked with collectors over the decision plan to elevate the airline out of chapter.

($1 = 81.7570 Indian rupees)

Reporting by Hritam Mukherjee and Chris Thomas in Bengaluru; Editing by Dhanya Ann Thoppil and Anil D’Silva

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