Cox & Kings share price falls 3% after ED arrests company's promoter
Peter Kerkar's arrest comes a few days after ED nabbed Cox and Kings CFO Anil Khandelwal and internal auditor Naresh Jain.
November 27, 2020 / 09:28 AM IST
Cox & Kings share price shed 3 percent in the early trade on November 27 after the Enforcement Directorate (ED) arrested company's promoter Peter Kerkar in an alleged case of money laundering.
The ED had in October arrested two former senior officers of the debt-ridden travel firm, one of the defaulters of Yes Bank, as part of its money-laundering probe against the private lender's founder Rana Kapoor.
The agency had arrested CFO Anil Khandelwal and internal auditor Naresh Jain under the Prevention of Money Laundering Act (PMLA).
The travel company faced ED scrutiny after the agency detected alleged irregularities in loans worth Rs 3,642 crore granted to it by Yes Bank, which are still outstanding. The agency suspects that the loan money was siphoned abroad via subsidiaries located in India.
The alleged scam is estimated at over Rs 20,000 crore and involves many banks that gave loans to the company but never got them back. The firm owes Axis Bank Rs 1,030 crore, IndusInd Bank Rs 239 crore and Kotak Mahindra Bank Rs 174 crore, according to the ED.
At 0916 hores, Cox & Kings was quoting at Rs 1.35, down Rs 0.05, or 3.57 percent on the BSE.
The share touched its 52-week high Rs 2.31 and 52-week low Rs 0.48 on July 3, 2020 and March 27, 2020, respectively.
It is trading 41.56 percent below its 52-week high and 181.25 percent above its 52-week low.