The CBI has booked former Managing Director of Maruti Udyog, Jagdish Khattar, for alleged bank loan fraud of Rs 110 crore by his new company, officials said on Tuesday.
In its FIR filed recently, the CBI has named Khattar and his company Carnation Auto India Limited for allegedly causing a loss of Rs 110 crore to Punjab National Bank, they said.
The CBI has carried out searches at the premises of 77-year old Khattar and Carnation Auto on Monday evening, they said.
Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as Managing Director of the company, they said.
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, the officials said.
"Carnation is a bonafide business failure. There is no wrong doing. Even an audit was conducted and nothing amiss was found. The bank has referred it to CBI as a part of the process followed by them. Search was conducted by CBI but nothing incriminating was found. We will be vindicated once the investigation is completed.” Khattar told PTI. The CBI has alleged that Khattar and his company dishonestly and fraudulently sold the goods hypothecated to the bank without its permission and diverted the funds thereby causing criminal breach of trust and cheating that caused wrongful loss to the bank and gain to Khattar and his company.
The bank had conducted a forensic audit which showed that fixed assets to the tune of Rs 66.92 crore were sold for a consideration amount of Rs 4.55 crore without its approval, they said.
It is also alleged that sale proceeds were not deposited with the bank and Khattar had dishonestly and fraudulently extended loans and advances to its sister concern/subsidiaries also.
"Thereby it has committed mis-appropriation of bank funds and has put them for own use," the FIR said.
The bank officials allegedly did not do mandatory monthly verification of stock and cross check the debtors/creditors, the FIR said adding role of bank officials will be under scanner.
The bank had mentioned five accused persons in its complaint including three guarantor companies--Khattar Auto India Pvt Ltd, Carnation Realty Pvt Ltd and Carnation Insurance Broking Company Pvt Ltd but their direct role did not surface during the verification exercise.
"However, their role in detail will be ascertained during investigation," the agency said.