07 October,2020 12:43 PM IST | Mumbai | Diwakar Sharma
Yes Bank
The Enforcement Directorate (ED) on Tuesday arrested Anil Khandelwal, CFO of Cox and Kings Group (CKG), and Naresh Jain, internal auditor of CKG, under Section 19 of the Prevention of Money Laundering Act PMLA, 2002. Both the accused were produced before the special judge (PMLA) and sent to 7-day ED custody.
During PMLA investigation, it has surfaced that Yes Bank has total outstanding of Rs 3,642 crore in respect to Cox and Kings Group. 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.
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 and not to take efforts to recover it.
The probe also revealed that during 2015-2019, the sales of Rs 3,908 crore was made to 15 non-existent/fictitious customers. Majority of collection shown in ledgers from Ezeego (another group entity of CKG) was not found in the bank statements.
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Also, there are fictitious 15 high value debtors reflected in the books of accounts. Another 147 sets of customers also appeared to be suspicious and not existent.
The Cox & King Limited (CKL) diverted Rs 1,100 crore to another stressed company, which has no business relationship with CKL, without any approval of the board. During the whole process, Anil Khandelwal and Naresh 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.
The investigation further revealed that Anil Khandelwal and Naresh Jain purchased various immovable properties from the funds diverted from Cox & Kings Group. Also, Rs 150 crore was diverted from Ezeego to Redkite Capital Private Limited, which was promoted by family members of Anil Khandelwal and Naresh Jain.
The bank transactions of Cox and King Group are not matching with the books of accounts and Anil Khandelwal and Naresh Jain created disparities between the books of accounts and the bank statements to camouflage the fraud, revealed the investigation.
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