Private sector lender Kotak Mahindra Bank has filed a case against the travel firm Cox & Kings Ltd., alleging fraud of more than Rs 170 crore.
Several other lenders to the now-bankrupt Cox and Kings also submitted their complaints with the Economic Offence Wing (EOW) of the Mumbai police for the alleged fraud against them. Initial inquiries into those complaints are still going on, however the Mumbai police filed a case based on Kotak Mahindra Bank's allegations and the case is now transferred to the EOW.
Also, EOW is investigating complaint for the same account registered by IndusInd Bank for a fraud costing Rs. 240 crore. "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 with know-how on the matter.
Last month, the company's promoter Ajay Ajit Peter Kerkar filed a counter-FIR against banks as well as the Cox and King Ltd's former management for causing a loss amounting to more than Rs. 5500 crore to the travel firm and its subsidiaries.
Currently, the travel firm Cox and Kings is going through the corporate insolvency proceedings. The ED last month carried out search operation at the group's five locations for making investigations in relation to Yes Bank scam. As per the ED, CKG took a loan of Rs. 3642 crore from Yes Bank.