Loan fraud case: No wrongdoings found in functioning of Carnation Auto by bankers, says ex-Maruti chief Khattar

Hours after being booked by the CBI over alleged loan fraud, Maruti Suzuki's flamboyant ex-chief Jagdish Khattar on Tuesday said that an exhaustive independent forensic audit at the behest of the bankers did not find any wrongdoings in the functioning of Carnation Auto, which he had created post retirement.

Khattar, who has been booked by the Central Bureau of Investigation (CBI) for an alleged bank loan fraud of Rs 110 crore, said no lapses in operations or financial management were found in the company by the investigating audit authorities and expressed hope that he will be vindicated once the probe is over.

"Post its (Carnation Auto) failure as a business, an exhaustive and detailed independent forensic audit at the behest of the bankers under the resolution professional was conducted by a leading independent auditor and nothing was found amiss," Khattar said in a statement.

Having found no lapses in operations or financial management, the bank (Punjab National Bank) has referred the matter to the CBI as part of the process followed by them, he added.

Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as Managing Director of the company.

After retirement he had launched Carnation for which he got a loan of Rs 170 crore in 2009. The loan was declared non performing asset in 2015 with effect from 2012, the FIR said.

The agency has registered an FIR under IPC sections related to criminal conspiracy and cheating on a complaint from Punjab National Bank.

Khattar said he had invested his life savings in the company.

"I understand the bank is following a process. I have always made myself available and will continue to fully cooperate with all the agencies. The claims being made were examined in great detail during the forensic audit and we provided satisfactory replies on each," he said.

Khattar further said: "We were cleared in the forensic audit on each count. I have no doubt we will be vindicated again once the investigation is completed."
The bank officials allegedly did not do mandatory monthly verification of stock