Mumbai Police takes Cox & Kings (India) CFO into custody
He was earlier arrested by the Enforcement Directorate (ED) in a different case and remanded to judicial custody. A team led by joint commissioner of police Niket Kaushik is probing this case. Audley Luis (55), vice-president, IBL, submitted a complaint to the Economic Offenses Wing (EOW). After making an inquiry, the Mumbai police registered an FIR. As per an officer “Khandelwal was instrumental in taking loans from banks and siphoning it off. Forensic auditors were appointed to examine details of transactions”.
As declared by the Police sources in Feb’2015, promoters and directors of Cox & Kings approached the bank for a commercial card facility on an unsecured basis and also submitted the firm’s latest audited financials for the FY 31 Mar’2014, along with the quarterly results ending 31 DEC’2014, along with a projection of business volumes.
The bank later sanctioned a card limit of Rs 25 crore based on personal and corporate guarantees. Cox and Kings, then continued to utilize the card limit and ensured that the payments were made on time. The limit was later increased to Rs 370 crore over three years when CNK guaranteed financial capacity to repay on time. The complaint said that in 2019, the bank had learned that CNK has defaulted on its statutory payments like TDS and GST. From June 2019, CNK started defaulting repayments and is claimed to have defrauded IBL of Rs 239 crore, a result of which FIR was registered.
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