Peter Kerkar of Cox & Kings arrested by ED in money laundering case
The Enforcement Directorate has arrested travel firm Cox and Kings’ promoter Peter Kerkar in an alleged money laundering case, as per reports. ED claimed that it has found the details of outstanding loans and how financial records and audit reports were fudged to take loans from Yes Bank. A formal complaint against Cox & Kings was filed by Yes Bank in March.
In June, the Enforcement Directorate carried out searches at premises of promoters and directors of Cox and Kings. It has been alleged by the ED that the promoters, directors, the Chief Financial Officer of the company had fraudulently obtained loans from Yes Bank worth Rs 3,642 crore.
In October, the ED had arrested Cox & Kings Group CFO Anil Khandelwal and internal auditor of Naresh Jain, under sections of the Prevention of Money Laundering Act (PMLA), in connection with the Yes Bank case.
An ED official said, “During investigation in the money laundering case, it has surfaced that Yes Bank has total outstanding of Rs 3,642 crore in respect of Cox & Kings Group of Companies (CKG).”
“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,” he said.
