Mumbai: EOW registers seventh case against Cox and Kings

The economic offenses wing (EOW) of the Mumbai Police registered seventh first information report (FIR) against Cox and Kings, its promotors, directors and employees for duping Yes Bank to the tune of ₹523 crore

The economic offenses wing (EOW) of the Mumbai Police registered seventh first information report (FIR) against Cox and Kings, its promotors, directors and employees for duping Yes Bank to the tune of ₹523 crore. The tours and travels company availed loan from the private sector bank but defaulted in repayment.

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On the basis of complaint lodged by Ashish Joshi, senior executive from Yes Bank, EOW registered the fresh FIR for loan default of ₹523 crore. Niket Kaushik, joint commissioner of police (EOW), confirmed the development and said the investigation is on.

Banking (fraud) unit of EOW has booked Cox and Kings promotor Ajay Ajit Peter Kerkar, his wife Urshila, senior executive Anil Khandelwal and some other directors, auditors and others.

EOW sources said various financial irregularities surfaced during the forensic audit of Cox and Kings group accounts, following which details of loan defaults have also emerged.

EOW is already investigating six FIRs against the group for alleged frauds involving over ₹2,000 crore. Of the six FIRs, five are registered by private sector banks.

Enforcement Directorate (ED) officers are also probing irregularities and money laundering aspect, while EOW is looking into the criminal part.

Kerkar and the other senior executives are facing charges under sections 406 (criminal breach of trust), 409 (criminal breach of trust by a 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 the Indian Penal Code.

EOW officers said the accused travel company, its promoters, directors, auditors and other accused conspired together and fraudulently availed loan from various banks. “Forged documents were submitted to banks by Cox and Kings group to fraudulently obtain the loan. Later the loan money was diverted and used for other purposes,” said an officer.

Previous FIRs against the group were made by Axis Bank, Kotak Mahindra Bank, IndusInd Bank, HDFC Bank, Laxmi Vilas Bank and a private investment firm.

EOW officer already interrogated Kerkar, Khandelwal, and others by taking their custody in previous FIRs. ED officers had also interrogated them. They are in judicial custody now.

“Kerkar and Khandelwal are key accused in the case and were at the helm of the affairs,” said another EOW officer.

Kerker has filed two counter FIRs against some complainant banks and senior executives of his company for conspiring together and cheating the company. EOW is also investigating these two complaints.