Kotak registers Rs 170 cr fraud case against firm

MUMBAI: Private lender Kotak Mahindra Bank has registered a case of alleged fraud of worth Rs 170 crore against the insolvent Cox & Kings Ltd.

A group of Cox & Kings' creditors had submitted complaints to the Mumbai police's Economic Offences Wing (EOW) against the firm for defrauding them.

While a preliminary investigation into their complainants is under way, the Mumbai police registered a case based on the complaint made by the Kotak Mahindra Bank,

which was then transferred to the EOW.

The complaint by IndusInd Bank being defrauded by Cox & Kings to the tune of around Rs 240 crore is among those that are under EOW's investigation.

"We have studied the complaint and the audit report prepared by PwC against CKL and have found merit in IndusInd Bank's complaint. The preliminary enquiry will be soon converted into an FIR," said an official.

Ajay Ajit Peter Kerkar, promoter of Cox & Kings has lodged counter-FIRs against the banks and key former management personnel last month and accused them of causing a loss to Cox & Kings and its affiliates to the tune of of over Rs 5,500 crore.

The firm is currently undergoing corporate insolvency resolution. In September, the Enforcement Directorate (ED) conducted searches at five locations of the firm in link with the Yes Bank scam.

According to the ED, Cox & Kings Group took a loan of Rs 3,642 crore from Yes Bank. ED also searched the premises of Kerkar, company's former directors Pesi Patel and Abhishek Goenka, former CFO Anil Khandelwal and auditor Naresh Jain.