The Enforcement Directorate's investigation into Jet Airways money laundering case has become a vehicle for the opposition and anti-Modi brigade to revisit the 2001 episode when LK Advani, who was Deputy Prime Minister in Atal Behari Vajpayee government, had failed to take action against illegal transactions between underworld don Dawood Ibrahim and Naresh Goyal, who is the former chairman of the now grounded Jet Airways.
As per the Home Ministry files, Goyal was receiving large dubious investments originating from Gulf Sheikhs.
This came to light in 2001, when IB Joint Director Anjan Gosh had sent a secret communique to Sangita Goirala, a joint secretary in the Home Ministry, referring to Goyal's intermittent contacts with underworld dons, Chhota Shakeel and Dawood Ibrahim, to settle financial issues.
He had raised strong suspicion that parts of Goyal's investments may have accrued through the assistance of these contacts. Even the RAW had issued a note on his money trail.
Despite this sensitive information at the government's disposal, Advani could have at least initiated a probe into this murky transactions, especially after Kandahar hijack drama. In fact, soon after this incident, Goyal was given security clearance for Jet Airways.
Goyal was allowed to go scotfree because of his high-level political contacts, which emboldened him to refuse giving information about his source of funds, claiming NRI status.
Using these political links, he was able to enlighten himself about the future plans of the civil aviation ministry under Shahnawaz Hussain, who was very close to him.
Goyal knew in advance government's plan to open UK sector for private airline companies and also given an informal assurance of getting permission to fly Jet Airways to UK, which allowed him to buy seven slots at London's Heathrow Airport in July 2004 and spend millions of US dollars for landing, parking and fueling rights.
This unfairly allowed Jet Airways to stay way ahead of its competitors.
Goyal also managed to secure security clearances from the civil aviation ministry, despite adverse remarks made by IB.
Interestingly, the home ministry, gave up its authority to issue security clearance and instead left it to the civil aviation ministry. Of all the records, Jet Airways' is the only case where the home ministry gave up its right to give security clearance.
The issue of the security clearance was raised in the parliament by former civil aviation minister Sharad Yadav. He had sought explanation from government regarding the unconditional security clearance given to Goyal, when his funding trail ran cold in the Isle of Man, a well-known tax haven.
NOT only, the ED investigation has all the potential to embarrass BJP, but has already caused a big damage to NCP and Congress' electoral prospects in Maharashtra and Haryana assembly elections, as names of Sonia Gandhi, Sharad Pawar and Praful Patel is cropping up in the Jet Airways case. They are accused of giving undue favours to Goyal's airliner, despite knowing Dawood-Goyal financial transactions.
Patel gave Jet Airways the much-coveted permission to fly to the US, making it the country’s first private sector airline to fly on the lucrative sector, but before it could start operations, the airliner was mired in a huge controversy.
The Maryland-based Jet Airways Inc had accused Jet Airways of trademark infringement and asked various authorities, not to allow Jet Airways to fly to US. Its CEO and president, Nancy M Heckerman, also alleged that the Indian airliner was an Al Qaeda company.
The US, on the behalf of Nancy, sought clarifications from UPA government, but within months in May 2003, the Indian government gave a clean chit to Jet Airways.
The government's stand remained consistent even after similar clarifications were sought by Singapore and UK governments in 2006 after a Jet Airways employee in London, Amin Asmin Tariq, was arrested for alleged links to the foiled attempt to blow up transatlantic flights with liquid bombs.
This is the same Patel, who had destroyed Air India. He first pushed the public air carrier into grave financial problem by loading it with Rs 50,000 crore debt by deciding to inflate its order for new aircraft from 28 to 68 sans a revenue plan and a road-map for aircraft deployment.
Secondly he merged Air India with Indian Airlines as the panacea to tackle losses of both these airline companies. Patel claimed the merger would help cost savings, but on the contrary it has been the biggest disaster in aviation history as the entity could not end problems relating to varying cultures and employee costs.
Thirdly, Patel withdrew Air India operations from lucrative routes, giving a chance for private airliners like Jet Airways, Etihad Airways, Qatar Airways, Air Asia, Singapore Airlines and several others to fill the gap.
The airliner's letters to its stations in Kozhikode, Doha and Bahrain, asking them to withdraw operations on the route is proof enough to implicate Patel, without his approval this decision would not have been taken.
The alleged nexus between politicians and Goyal came to light during investigations carried out by ED into Jet Airways alleged forex violation during the signing of over Rs 9,000 crore deal with its strategic partner Etihad Airways in 2014 for a loyalty programme business.
On October 16, the agency had questioned his wife Anita Goyal as part of its ongoing probe in the case.
Rs 9,000 crore fund was received by Jet Airways and allegedly diverted to companies abroad, thus causing huge foreign exchange loss to the exchequer.
As per the allegations, the money was diverted through inflated payments for the lease of airplanes and their maintenance services over 10 years.
Goyal is accused of diverting a major amount of loans abroad via 19 of his companies and an Ireland-based airplane leasing firm, which is alleged to be a shell company.
This shell company has alleged to have helped in diverting the inflated payments that were double or three times the market price.
Goyal also is accused of siphoning off huge amounts in foreign jurisdictions, through dubious and fictitious transactions, by structuring various tax-evading schemes involving its domestic companies and the companies in foreign tax jurisdiction.