CBI Books Maruti's Former Top Executive For Bank Fraud

Publish Date: 24 Dec, 2019 06:45 PM   |   Arnima  

New Delhi: Former Maruti Udyog Limited top executive Jagdish Khattar has been charged by the Central Bureau of Investigation in an alleged bank fraud case. The CBI has booked Maruti Suzuki India Limited's former Managing Director for alleged criminal conspiracy, criminal misconduct and cheating Punjab National Bank to the amount of rupees 110 crores.

The case has been registered based on a complaint by Punjab National Bank on December 20 and the CBI has alleged that Khattar along with some 'unknown public servants' had cheated the bank of the amount which he failed to repay afterwards.

Khattar was with MSIL from 1993 to 2007 and has retired from the post of managing director of the company. The company was then known as Maruti Udyog Limited.After his superannuation, the Maruti top shot had launched 'Carnation Reality Private Limited' and 'Carnation Broking'. He had got a loan sanctioned worth rupees 170 crore in year 2009 for the same purpose. The loan, however, was declared non-performing asset (NPA) in 2015 with effect from 2012, as stated in the agency's FIR.

Khattar had established Carnation as a car servicing and repair outlet of various brands. The company also dealt in sale and purchase of second hand vehicles.The CBI has said that an investigation has been launched to look into the matter and a look out circular against Khattar has not yet been issued but the probe agency has also alleged that PNB in forensic audit found that khattar had fraudulently sold old fixed assets amounting to rupees 66.92 crore for a mere rupees 4.55 crore without the banks prior approval. Those assets were actually been furnished to the bank as collateral.

CBI has also stated that khatter did not deposit the proceeds of the sale to the bank. According to the FIR registered with the CBI, “The accused borrowers dishonestly and fraudulently in order to cheat the bank.. .and sold the goods hypothecated to the bank without its permission and diverted the funds thereby causing criminal breach of trust and cheating causing wrongful loss to the bank and corresponding gain to themselves,"