Police arrest Ajit Menon, MD of Cox & Kings Financial Services | Mumbai news - Hindustan Times
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Police arrest Ajit Menon, MD of Cox & Kings Financial Services

ByVinay Dalvi
Apr 12, 2024 10:01 AM IST

The Economic Offences Wing (EOW) of the Mumbai police has arrested Ajit Menon in connection with a bank loan fraud case

MUMBAI The Economic Offences Wing (EOW) of the Mumbai police has arrested Ajit Menon, managing director of Cox & Kings Financial Services, in connection with a bank loan fraud case. The police said Menon was arrested at Kochi airport after he landed there from London. He was arrested based on a Lookout Circular (LoC) issued by the EOW, police officers said.

Police arrest MD of Cox & Kings Financial Services
Police arrest MD of Cox & Kings Financial Services

The police officers said that Menon is a British national, who is also the CEO of Menininger Hotels that has several properties in European countries. The EOW Banking Unit officials formally arrested the 67-year-old resident of Darlaston road, London, on Thursday.

According to the police, though Menon was never officially appointed as managing director of the subsidiary of Cox & Kings, he was introduced as the managing director by Ajay Kerkar, the promoter, to many people.

“Ajit Menon has attended several meetings where discussions happened on fudging company accounts to show that the company in sound financial condition to get a loan. The loan taken was 400 crore out of which 396 crore was transferred to the parent company, Cox and Kings, illegally and was not used for the purpose for which it was disbursed. Out of the $396 crore, 56 crore was transferred to Promithon Enterprises, a company handled by Menon,” said a police officer.

The police officer said that the case was registered in December 2021, and was the tenth case registered against Cox & Kings. Unlike the previous nine FIRs, this was the first case against Cox & Kings Financial Services Ltd (CKFSL), a sister concern of Cox & Kings, for defrauding Yes Bank of around 400 crore.

The FIR named Cox & Kings Financial Services Ltd’s promoter and director Ajay Ajit Peter Kerkar, his wife Urshila Kerkar and two others as accused in the case. They were booked by the Banking (cheating) unit-2 of EOW recently on the complaint of Ashish Vinod Joshi, chief vigilance officer at Yes Bank.

According to the FIR, by making false and bogus purchases and sale transactions recorded in the company’s account books during 2018-2019, the accused showed the financial condition of the company was in good shape.

“The company presented its incorrect / falsified financial statements to justify high credit-worthiness. The company did not use the loan money for the purpose they have availed it. The company also violated various terms and conditions imposed by Yes Bank and breached the bank’s trust with the help of fudged balance sheets and caused wrongful loss to the bank to the tune of 398.38 crore,” the complainant has said.

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