A potential fraud detected by investigative agencies at crisis-hit Jet Airways (India) Ltd. led to the issuance of a lookout circular against Naresh Goyal and his wife, a senior government official said requesting anonymity.
Promoters of companies in which serious financial irregularities are found, need to be made accountable, the official said.
Naresh Goyal and his wife Anita Goyal were stopped from flying out of the country by immigration authorities based on a lookout circular issued on the request of Ministry of Corporate Affairs. A lookout circular is issued by the Ministry of Home Affairs.
The Registrar of Companies, which comes under the Ministry of Corporate Affairs, had found instances of Companies Act violation and some unexplained fund trail, according to a Mint report.
The Ministry of Corporate Affairs is following a principle-based approach to stop promoters suspected to be involved in fraud from fleeing the country, the official cited earlier said, adding that restrictions need to be imposed on promoters and management of the company where siphoning of funds or a fraud is suspected.
This, according to the official, is being done so that promoters or directors of the company cooperate in time-bound completion of investigation, in cases where a probe has been initiated.
The management of the companies, said to be involved in suspicious financial transactions, and undergoing insolvency resolution, have been under the ministry’s radar as well, the official said.
(Corrects an earlier version of that misstated that the alleged fraud led to Goyal’s arrest. He wasn’t arrested but stopped from flying out of the country)
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