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CBI books former Maruti Udyog MD Jagdish Khattar on bank fraud

Our Bureau New Delhi | Updated on December 24, 2019 Published on December 24, 2019

A file photo of Jagdish Khattar, former Managing Director, Maruti Udyog Limited.   -  The Hindu

Will fully cooperate with inquiry, says Khattar

The Central Bureau of Investigation (CBI) has filed a first information report (FIR) against Jagdish Khattar, former Managing Director of Maruti Udyog, for an alleged bank loan fraud of ₹110 crore by his company — Carnation Auto.

The FIR was filed recently, and the CBI named Khattar for allegedly causing a loss of ₹110 crore to Punjab National Bank. The CBI also carried out searches at Carnation Auto India Ltd on Monday evening.

The CBI 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 ₹66.92 crore were sold for a consideration amount of ₹4.55 crore without its approval, CBI 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.

The CBI said the bank in its complaint dated October 10 has mentioned the names of five accused persons out of which three companies are Guarantors namely 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 CBI said.

Khattar was with Maruti Udyog Ltd (now Maruti Suzuki India) 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 ₹170 crore sanctioned 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.

Commenting on the CBI enquiry, Khattar said, “I had invested my 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. We were cleared in the forensic audit on each count. I have no doubt we will be vindicated again once the investigation is completed.”

 

Published on December 24, 2019
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