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Rs.400 crore fraud in YES Bank, EOW arrests accused at Cochin Airport


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The Economic Offences Wing (EOW) of the Mumbai Police has arrested a close aide of Ajay Peter Kerkar, the owner of global tour and travels company Cox & Kings, in connection with a Rs 400-crore fraud case involving Yes Bank. The arrested individual, Ajit P Menon, is a British national who had been wanted in the case for three years. He was apprehended at the Cochin International Airport in Kerala on April 9, 2024, upon his arrival from the United Kingdom. The EOW had issued a Look Out Circular (LoC) against him, and he was subsequently brought to Mumbai for further investigation.

Background of the Fraud Case

In February 2021, the EOW registered an offense against Cox & Kings Financial Services Ltd (CKFSL), a sister concern of Cox & Kings, for defrauding Yes Bank of nearly Rs 400 crore. The fraud involved the company making false and bogus purchases and selling transaction records in its account books to show a healthy financial condition. This allowed them to secure a loan of Rs 400 crore from Yes Bank between September 7, 2018, and November 1, 2019. However, a significant portion of the loan money was allegedly diverted to Cox & Kings Ltd for its own benefit. The EOW’s investigation revealed that Ajit Menon, on the instructions of Ajay Peter Kerkar, played a key role in handling the loan transactions and company policy.

Charges and Investigation

Ajit Menon has been arrested under various sections of the Indian Penal Code, including cheating, criminal breach of trust, forgery, and criminal conspiracy. The EOW officials found that Rs 396 crore of the loan money was fraudulently diverted to Cox & Kings Limited on Menon’s instructions. Statements of key senior executives of the company, including Milind Gandhi, Ravi Menon, and Shailesh Pednekar, have been recorded before the court. They confirmed Menon’s involvement in handling the loan amount and company operations.

The EOW now aims to investigate how the diverted money was utilized by the accused individuals. Menon’s arrest is part of a broader investigation into multiple bank fraud cases involving Cox & Kings and its senior functionaries. Ajay Peter Kerkar and others have previously been arrested and charged by the EOW and the Enforcement Directorate (ED) in connection with these cases.

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