The Enforcement Directorate (ED) on Tuesday mentioned it has arrested the CFO and inside auditor of Cox & Kings Group in reference to the Sure Financial institution case.
The arrested accused have been recognized as Anil Khandelwal, CFO of CKG and Naresh Jain, inside auditor of CKG, below sections of the Prevention of Cash Laundering Act (PMLA).
Each of them had been produced earlier than a court docket and despatched to seven days’ ED custody.
An ED offiialc mentioned, “Throughout investigation within the cash laundering case it has surfaced that Sure Financial institution has whole excellent of Rs three,642 crore in respect of Cox & Kings Group of Corporations (CKG).”
“Additional investigation revealed that CKG cast its consolidated financials by manipulating the stability sheets of abroad subsidiaries. As well as some board resolutions submitted to banks for sanctioning the loans had been additionally discovered to be cast,” the ED official mentioned.
He mentioned that in investigation it was additionally revealed that the mortgage sanction from Sure Financial institution was pushed by then CMD Rana Kapoor and was given bypassing the norms.
ED gathered the evidences concerning clear instruction of Kapoor to the involved financial institution officers to get the mentioned mortgage continued and to not make efforts to get well it, the official mentioned.
“Investigation additionally revealed that in monetary years 2015 to 2019, gross sales of Rs three,908 crore had been made to 15 non-existent/fictitious clients,” he mentioned, including that majority of collections proven in ledgers from Ezeego (one other group entity of CKG) was not discovered within the financial institution statements.
The official additionally mentioned that there are 15 fictitious high-value debtors mirrored within the books of accounts.
“One other 147 units of shoppers additionally gave the impression to be suspicious and non-existent. The Cox & Kings Restricted (CKL) has diverted Rs 1,100 crore to a different burdened firm with none approval of the board which has no enterprise relationship with the corporate,” he mentioned.
“Throughout the entire course of Khandelwal and Jain acquired the mortgaged property amounting to Rs 63 crore of their owned enterprise entity — Reward Enterprise Options, with out paying a penny from their pocket.”
Investigation additional revealed that Khandelwal and Jain bought numerous immovable properties from the funds diverted from CKG.
“Additional investigation revealed that from Ezeego, Rs 150 crore had been diverted to Redkite Capital Non-public Restricted which was promoted by relations of Khandelwal, CFO of CKL and Jain, inside auditor of CKL,” the official mentioned.
The official alleged that investigation to this point has revealed that the financial institution transactions of CKG will not be matching with the books of accounts and Khandelwal and Jain created disparities between the books of accounts and the financial institution statements to camouflage the fraud.
The ED has already arrested Kapoor in March this yr.
The ED final month hooked up Kapoor’s properties in London valued at Rs 127 crore in London. The ED on July 9 hooked up Rs 2,203 crore of belongings, comprising 344 financial institution accounts, investments and high-end autos in India, New York and Australia, of Kapoor and his household, Dheeraj and Kapil Wadhawan and others below the PMLA within the Rs three,700 crore fraud case.