Yes Bank case: ED arrests CFO and internal auditor of Cox and Kings
ED has allegedly found that during FY2015 and FY2019, sales worth Rs 3,908 crore were made to 15 fictitious customers of Cox and Kings.
New Delhi: The Enforcement Directorate (ED) on Tuesday arrested Anil Khandelwal, chief financial officer and Naresh Jain, Internal auditor of global tours and travel company Cox and Kings Group (CKG) in connection with the Yes Bank money laundering probe.
Both the accused were produced before the PMLA court and have been remanded to 7 day ED custody.
The ED had claimed that the firm defaulted on loan payments worth Rs 3,642 crore.
Further investigation revealed that CKG forged it’s 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. Further Investigation revealed that the loan sanction from Yes bank was driven by then CMD Rana Kapoor and was given bypassing the norms. ED gathered the evidences regarding clear instruction of Rana Kapoor to the concerned bank officials to get the said loan continued.
ED has allegedly found that during FY2015 and FY2019, sales worth Rs 3,908 crore were made to 15 fictitious customers of Cox and Kings. Majority of collection showed in the ledger of Ezeego, a group firm of Cox and Kings. Another 147 set of customers also appeared to be suspicious and non-existent, said the agency.
As per ED findings, the Cox & King Limited (CKL) has diverted Rs 1100 crore to another stressed company without any approval of board which has no business relationship with the company.
During the whole process, Anil Khandelwal and Naresh Jain acquired the mortgaged property amounting to Rs. 63 Crore in their owned business entity M/s Reward Business Solutions without paying a penny from their pocket.
Investigation further revealed that,l Anil Khandelwal and Naresh Jain purchased various immovable properties from the funds diverted from Cox & Kings Group.
Investigation conducted so far has revealed that the bank transactions of Cox and King Group are not matching with the books of accounts and Anil Khandelwal & Naresh Jain creating disparities between the books of accounts and the bank statements to camouflage the fraud.