New Delhi: The Enforcement Directorate (ED) on Tuesday said that it has got seven days custody of Cox and Kings Group’s Chief Financial Officer (CFO) Anil Khandelwal and Internal Auditor Naresh Jain, in case of the Yes Bank scam.
The ED officials said the accused were arrested under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA) for their offence of money laundering and produced before the PMLA Special Judge, seeking custody for thorough interrogation.
During investigation in the Yes Bank fraud case, the central agency found that the Bank has total outstanding of Rs 3,642 crore in respect of Cox and Kings Group of Companies (CKG). Further investigation revealed that CKG forged it’s consolidated financials by manipulating the balance sheets of overseas subsidiaries.
‘Investigation conducted so far has revealed that the bank transactions of Cox and King Group are not matching with the books of accounts and Anil Khandelwal and Naresh Jain are creating disparities between the books of accounts and the bank statements to camouflage the fraud,’ the probe agency officials said.
Some board resolutions submitted to banks for sanctioning the loans were also found to be forged and further investigation revealed that the loan sanction from Yes bank was driven by then CMD Rana Kapoor and given bypassing the norms, the officials further said.
The probing team also 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, they added.
The agency probe also revealed that during Financial year 2015 to 2019, sales of Rs 3908 crore was made to 15 non-existent or fictitious customers, whereas majority of collection shown in ledgers from Ezeego, an another group entity of CKG, was not found in the bank statements.
Also, there were fictitious 15 high value debtors reflected in the books of accounts. Another 147 sets of customers also appeared to be suspicious and non-existent. The Cox & King Limited (CKL) has diverted Rs 1,100 crore to another stressed company without any approval of board, which has no business relationship with the company.
During the whole process, Khandelwal and 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.
Investigation further revealed that Khandelwal and Jain purchased various immovable properties from the funds diverted from Cox & Kings Group.
Further investigation revealed that from Ezeego, Rs 150 Crore were diverted to Redkite Capital Private Limited, which was promoted by family members of Anil Khandelwal, CFO of Cox & Kings Ltd (CKL) and Naresh Jain, Internal Auditor of CKL, the ED said.