5th FIR against Cox and Kings for Rs 50 cr loan fraud on HDFC Bank

The Economic Offenses Wing (EOW) of Mumbai police has registered a fifth FIR against global tours and travels company Cox and Kings Group (CKG) for allegedly cheating HDFC Bank to the tune of Rs 50.71 crores.

A senior police officer confirmed the development and said that after the Enforcement Directorate’s custody of company promoter Peter Kerkar ends, he may be questioned by the EOW in relation to the cases registered by the department.

The banking (fraud) unit-2 of EOW booked CKG’s promoter Ajay Ajit Peter Kerkar, Urshila Kerkar and other directors, auditors and others on the complaint of Rajit Matloob Quereshi, the authorised representative of HDFC Bank.

After carrying out a preliminary inquiry on the HDFC Bank’s complaint, EOW officials concluded that primary facie a cognisable offence was committed. Hence, an offense was registered at the NM Joshi Marg police station in Mumbai and the case was further transferred to EOW for further investigation.

EOW has booked the accused under sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant or agent), 420 (cheating), 465 (forgery), 467 (forgery of valuable security), 468 (forgery for purpose of cheating) 471 (using as genuine a forged) and 120B (criminal conspiracy) of Indian Penal Code (IPC) against the accused.

EOW officials said that the accused travel company, its promoters, directors, auditors and other accused conspired together and fraudulently availed loan from the top private sector bank. “The documents submitted to HDFC Bank by CKG were forged and fictitious and they were submitted with an intention to fraudulently obtain the loan,” said an officer.

Peter Kerkar is already facing four FIRs registered by EOW. These complaints were made by Axis Bank, Kotak Mahindra Bank, IndusInd bank and a private investment firm. The irregularities as per these four complaints are to the tune of around Rs 1,900 crores. Charges of cheating, forgery, criminal conspiracy are levelled against him by the complainants.

Peter Kerker too has filed two counter FIRs against some complainant banks and the same are being investigated by the EOW officials.