The Enforcement Directorate (ED) on Tuesday mentioned it has arrested the CFO and internal auditor of Cox & Kings Group in reference to the Yes Bank case.
The arrested accused have been recognized as Anil Khandelwal, CFO of CKG and Naresh Jain, internal auditor of CKG, underneath sections of the Prevention of Money Laundering Act (PMLA).
Both of them have been produced earlier than a court docket and despatched to seven days’ ED custody.
An ED offiialc mentioned, “During investigation in the money laundering case it has surfaced that Yes Bank has total outstanding of Rs 3,642 crore in respect of Cox & Kings Group of Companies (CKG).”
“Further investigation revealed that CKG forged its consolidated financials by manipulating the balance sheets of overseas subsidiaries. In addition some board resolutions submitted to banks for sanctioning the loans were also found to be forged,” the ED official mentioned.
He mentioned that in investigation it was additionally revealed that the mortgage sanction from Yes Bank was pushed by then CMD Rana Kapoor and was given bypassing the norms.
ED gathered the evidences concerning clear instruction of Kapoor to the involved financial institution officers to get the mentioned mortgage continued and to not make efforts to get well it, the official mentioned.
“Investigation also revealed that during financial years 2015 to 2019, sales of Rs 3,908 crore were made to 15 non-existent/fictitious customers,” he mentioned, including that majority of collections proven in ledgers from Ezeego (one other group entity of CKG) was not discovered within the financial institution statements.
The official additionally mentioned that there are 15 fictitious high-value debtors mirrored within the books of accounts.
“Another 147 sets of customers also appeared to be suspicious and non-existent. The Cox & Kings Limited (CKL) has diverted Rs 1,100 crore to another stressed company without any approval of the board which has no business relationship with the company,” he mentioned.
“During the whole process Khandelwal and Jain acquired the mortgaged property amounting to Rs 63 crore in their owned business entity — Reward Business Solutions, without paying a penny from their pocket.”
Investigation additional revealed that Khandelwal and Jain bought varied immovable properties from the funds diverted from CKG.
“Further investigation revealed that from Ezeego, Rs 150 crore were diverted to Redkite Capital Private Limited which was promoted by family members of Khandelwal, CFO of CKL and Jain, internal auditor of CKL,” the official mentioned.
The official alleged that investigation up to now has revealed that the financial institution transactions of CKG aren’t matching with the books of accounts and Khandelwal and Jain created disparities between the books of accounts and the financial institution statements to camouflage the fraud.
The ED has already arrested Kapoor in March this yr.
The ED final month hooked up Kapoor’s properties in London valued at Rs 127 crore in London. The ED on July 9 hooked up Rs 2,203 crore of property, comprising 344 financial institution accounts, investments and high-end automobiles in India, New York and Australia, of Kapoor and his household, Dheeraj and Kapil Wadhawan and others underneath the PMLA within the Rs 3,700 crore fraud case.