Enforcement Directorate raids premises of Jet Airways founder Naresh Goyal Mumbai and Delhi on Friday

The Enforcement Directorate (ED) raided premises of Jet Airways founder Naresh Goyal in Mumbai and Delhi on Friday for alleged violations of Foreign Direct Investment (FDI) norms. The agency carried out searches at more than a dozen of places in Mumbai and Delhi.

"We are probing violation made by the company and its promoters under provisions of the Foreign Exchange Management Act (FEMA)," said a senior ED officer. There are serious and specific violations made by Jet Privilege Private Limited. "The company has violated FDI norms when the UAE-based airline Etihad Airways took a stake in Jet Privilege Private Limited in 2014," said the officer.

The officer said that they have managed to collect various documents about the Etihad investment in Jet Airways. "Once the raids are over we will analyse all the papers," the officer added. The agency is also using the Ministry of Corporate Affairs (MCA) inspection report prepared in July that had found large-scale irregularities, including diversion of funds, at the airline.

Commenting on the development, an Etihad spokesperson had earlier said: "Etihad is co-operating fully with relevant authorities and we abide by the laws of various countries we operate in."

In the meantime, the Centre said the Delhi HC that Goyal, is not cooperating in the investigation in a case of alleged fraud of Rs 18,000 crore.