Yes Bank scam: ED carries out searches at 5 premises of Cox & Kings Group

Enforcement Directorate (ED) has stepped up ir investigation in Yes Bank case. After filing a chargesheet in a Mumbai court, ncy conducted searches at five premises of promoter, directors, CFO and auditor of Cox and Kings Group (CKG) in Mumbai involved in Yes Bank fraud case of Rs 3642 crore.

According to ncy, searches were carried out at premises of Ajay Ajit Peter, Pesi Patel, Abhishek Goenka, Anil Khandelwal and Naresh Jain of CKG Mumbai in Yes Bank fraud case under provisions of Prevention of Money Laundering Act (PMLA), 2002. During investigation, ncy found certain irregularities in relation to loan sanctioned to Cox & Kings Group. group, according to ED, had created multiple layers of onshore and offshore subsidiary across globe through which money was siphoned off.

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'Loan amount was defaulted' 

Sources in ncy say that multiple companies were floated that were used to siphon funds. Malvern Travel Limited, UK -- an entity of CKG - had an outstanding of Rs 493 crore and y allegedly used fraudulent bank documents to avail loan from Yes Bank.

"This forgery was pointed out by KPMG which is administrator of this UK based entity. In relation to Cox & Kings Limited (CKL), company forged its consolidated financials by forging balance sheets of overseas subsidiaries. same was informed to BSE/NSE by resolution professional in writing. statutory auditor of Promeon Enterprise Limited, UK (PEL- a subsidiary of CKG) was Raffingers UK LLP and financials of PEL were sent to India by fictitious domain name impersonating current officials of Raffingers UK LLP. For this, Raffingers UK LLP filed a criminal complaint to National Crime ncy, UK," read a statement released by ncy.

According to findings of ED investigation, after loan amount defaulted, lenders appointed Pricewaterhouse Coopers (PWC) for forensic audit but "manment did t cooperate".

ncy maintains that PWC confirmed "falsification of accounts, overstating sales figures and understating debt figures, fictitious transactions etc. PWC reported that from Fiscal Year 15 to Fiscal Year 19, sales of Rs 3908 crore were made to 15 n-existent/fictitious customers. Majority of collection shown in ledgers from Ezeego (ar group entity) was t found in bank statements. Ar 147 sets of customers are also suspicious and t existent, as per PWC report. As per report, Anil Khandelwal, CFO of CKL diverted Rs 1100 Crore to Alok Industries Ltd without any approval of board."

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ncy in its investigation found that CKG sold one of its subsidiary Holiday Break Education Limited, UK for Rs 4,387 crore but did t clear liability of Yes bank. ncy suspects that group siphoned off majority of money. "From this siphoning, USD 15.34 Million was transferred to Kuber Investment Mauritius Pvt Ltd which was controlled by Peter Kerker," read ED statement.  

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