A preliminary enquiry against Cox & Kings is already ongoing based on complaint of payment default worth Rs 239 crore by IndusInd Bank
Allegations of fraud worth Rs 1,204 crore against Cox & Kings, made by Axis Bank and Kotak Mahindra Bank, are under investigation by the Mumbai Police’s economic offences wing (EOW).
Ajay Peter Kerkar, Director and Group CEO of Cox & Kings, told The Times of India the investigation “is an inquiry”.
Axis Bank in its complaint alleged that some office bearers of Cox & Kings and its sister-concerns cheated the bank of Rs 1,030 crore after availing loans, which were not repaid.
In its complaint, Kotak Mahindra Bank alleged that the travel company in “manifold transactions” managed to “siphon off huge sums … from banks, financial institutions and public investors” through subsidiaries and offshore companies. The bank added that it extended financial services to Cox & Kings since 2012 and outstanding amount till June 24, 2019 was Rs 174.3 crore.
Moneycontrol could not confirm the development independently.
Following the default, banks assigned PriceWaterhouse-Coopers (PWC) to undertake a forensic audit. Two of these draft reports found “irregularities and fraudulent practices of some of office bearers of the travel company,” it said.
PWC’s first draft report for Kotak said the bank had “all reason” to believe that receivable Rs 449 crore from 15 parties were “fictitious” as these parties had common addresses, were created on the same day, and were not found at mentioned address during physical visit.First information report (FIR) for both cases is yet to be registered. Notably, the two complaints by Kotak and Axis, take such complaints against the travel company to three, as a preliminary enquiry is already ongoing based on complaint of payment default worth Rs 239 crore by IndusInd Bank, the report added.