CBI court grants bail to former Cox & Kings director, two others in ₹946 crore loan fraud case

The Central Bureau of Investigation (CBI) has alleged that the executives of Cox & Kings submitted forged balance sheets to secure credit facilities for Ezeego One Travels and Tours Ltd (EOTTL), a group company, despite its poor financial health

MUMBAI: A special CBI court has granted bail to Ajay Kerkar, former director of Cox & Kings, along with two other executives — Urshila Kerkar and Vanaja Rajan — in a ₹946.44 crore loan fraud case involving Yes Bank. The order comes nearly two weeks after bail was granted to former Yes Bank CEO Rana Kapoor and five others accused in the same matter.

CBI court grants bail to former Cox & Kings director, two others in ₹946 crore loan fraud case

The Central Bureau of Investigation (CBI) has alleged that the executives of Cox & Kings submitted forged balance sheets to secure credit facilities for Ezeego One Travels and Tours Ltd (EOTTL), a group company, despite its poor financial health. The sanctioned funds were then allegedly siphoned off to settle liabilities of the parent company in violation of the loan’s purpose.

Special CBI judge SH Gwalani, in an order dated May 7, noted that the CBI had not placed any material on record to justify the continued custody of the accused. “Applicant/accused was not arrested by the CBI during the course of investigation till filing of charge sheet,” the court observed.

The court further remarked that EOTTL had applied for loans by submitting inflated and forged balance sheets. “In pursuance of the criminal conspiracy, false end-use certificates were prepared and submitted to Yes Bank Limited,” the judge stated, adding that key officials deliberately diverted the funds to Cox & Kings and related entities.

The defence argued that the accused were innocent, had cooperated with the investigation, and were unlikely to abscond or interfere with the judicial process. The court found no apprehension from the prosecution that granting bail would hinder the trial, and accordingly allowed the pleas.

The case originated from a CBI FIR filed in November 2020, based on a complaint by Ashish Joshi, then chief vigilance officer of Yes Bank. He alleged that Yes Bank sanctioned ₹650 crore in loans to EOTTL in 2017, later increasing it to ₹1,015 crore in 2018, despite the company’s deteriorating financials. The account turned non-performing in June 2019. A subsequent forensic audit uncovered signs of fraud, and the account was formally declared fraudulent by the bank in February 2020, involving ₹946.44 crore.