New Delhi: Jagdish Khattar, the former managing director (MD) of Maruti Udyog, has been booked by the Central Bureau of Investigation (CBI) in connection with a Rs 110 crore bank loan fraud case.
The CBI in its FIR named Khattar and his new company, Carnation Auto India Limited, for allegedly causing a loss of Rs 110 crore to the Punjab National Bank (PNB). The agency sleuths carried out searches at the premises of 77-year-old Khattar and Carnation Auto on Monday, sources said.
Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as MD of the company.
After retirement Khattar had launched Carnation Auto India Limited 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 CBI’s FIR said.
The agency has registered an FIR under IPC sections related to criminal conspiracy and cheating on a complaint from PNB, sources said.
“Carnation is a bonafide business failure. There is no wrongdoing. Even an audit was conducted and nothing amiss was found. The bank has referred it to the CBI as a part of the process followed by them. Search was conducted by the CBI but nothing incriminating was found. We will be vindicated once the investigation is completed,” Khattar clarified in a statement issued on Tuesday.
“I 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. We were cleared in the forensic audit on each count. I have no doubt we will be vindicated again once the investigation is completed,” he added.
The CBI alleged that Khattar and his company 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 him and his company.
The bank had conducted a forensic audit which showed that fixed assets to the tune of Rs 66.92 cr were sold for a consideration amount of Rs 4.55 cr without its approval, the 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 as well.
“Thereby it has committed misappropriation of bank funds and has put them for own use,” the FIR filed by the probe body said....