Just last week, there were reports that the Enforcement Directorate (ED) had raided the premises connected to tour operator Cox & Kings Limited (CKG). Today, the company has come out and denied this claim.
The company informed the exchange, “We can confirm that the official premises of the Cox & Kings Ltd were not raided by the Enforcement Directorate (ED). Therefore there is no written communication received from the Enforcement Directorate (ED) to the Company.” The company further added as per the available information, few raids were carried out by the ED at the residential premises of the suspended Board of Directors of the Company and erstwhile key managerial personnel (KMP) who all have resigned from the Company. The names of the promoters of the company and its auditor' names surfaced during the raid.
It was believed the raid at Cox and Kings was due to its exposure to Yes bank. It is one of the biggest borrowers of Yes Bank with an approximate exposure of Rs 2,285 crore, according to sources. The company further added the raid by ED was related to the loan that was availed by the company from Yes Bank under the tenure of the Board of Directors “which are now suspended due to commencement of Corporate Insolvency Resolution Process.”
In October 2019, the creditors of Cox & Kings had triggered insolvency against the company and the powers of the board of directors were suspended.