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    Kotak Mahindra and Axis Bank allege Rs 1,200 crore fraud by Cox & Kings, probe begins

    Synopsis

    Already, a preliminary enquiry has been registered against the travel company on the basis of a complaint lodged by IndusInd Bank, which has alleged a default in payment of Rs 239 crore.

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    The first draft interim report also said that there was receivable Rs 449 crore from 15 parties and the bank had all reason to believe they were fictitious.
    (This story originally appeared in on Aug 09, 2020)
    MUMBAI: A probe has been initiated into two complaints of alleged fraud to the tune of Rs 1,204 crore against travel company Cox & Kings Ltd. The complaints, which have been lodged by two banks — Kotak Mahindra and Axis Bank — are being investigated by the economic offences wing of the Mumbai police.

    Director and group chief executive officer of Cox & Kings, Ajay Peter Kerkar, said: “It’s an inquiry.”

    Already, a preliminary enquiry has been registered against the travel company on the basis of a complaint lodged by IndusInd Bank, which has alleged a default in payment of Rs 239 crore.

    Now, Kotak Bank has stated that it has been extending financial facilities to the travel firm since 2012, and on June 24, 2019 the outstanding amount stood at Rs 174.3 crore.

    One of the allegations is that the travel firm, through its subsidiaries and offshore companies, indulged in manifold transactions and siphoned off huge sums belonging to banks, financial institutions and public investors.

    After default, the banks appointed M/s PriceWaterhouse-Coopers to do a forensic audit. Its two draft reports mentioned irregularities and fraudulent practices of some of officebearers of the travel company.

    The first draft interim report also said that there was receivable Rs 449 crore from 15 parties and the bank had all reason to believe they were fictitious. These 15 parties had common addresses and were created on the same day in the travel firm’s system, police said. On a visit to the addresses, it was found that the parties were not located there.

    As for Axis Bank, it has submitted a complaint that some office-bears of the travel firm and its sister concerns had availed loan facilities to the tune of Rs 1,030 crore and cheated the bank by not repaying. In both cases, FIRs are yet to be registered.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    33 Comments on this Story

    G A Regoo42 days ago
    Our Banking Pandora Box opens dramatically, in phases, of its choice and when need arises. It is over one year Cox and Kings had filled for Bankruptcy. The Indian Creditors make the debacle public now. What a coverup?
    Alo Ran42 days ago
    So these are the types of 'PERAIVATE Banks' we are having & for which this Govt sings eulogies too often.Interesting fact is the CMD of this Bk. is also Gujju &
    highly trustworthy to powers that be like Nirav & Mehulnhai.
    Raghunandan Raghavachari43 days ago
    Kotak Mahindra is not a foolish to loose such a huge amount.He is just crying wolf after he was enabled to partner with Cox And Kings collusion business.The reason obvious the Indian Finance is going under and perhaps all banks going bust.Why not send the money to Benami and then Cry Wolf in these torrid pandemic days.Time that CBI send their tax and other sleuth , get the culprit CA if any do forensic audit and if mishiefs are found proceed against Kotak before he makes his escape.Remember always the great fiction writer Arthur Haily " Money Changers ' where in the fiction is involved private American bank and you may get wiser.Money changers and CARPET BAGGERS ABOOUND IN INDIA TOO PERHAPS A SAD AFFAIR.If sleuths turn into blood hound and investigate by grilling ' Mens Rhea can be established.
    The Economic Times