The Central Bureau of Investigation (CBI) has obtained permission to question former managing director of Yes Bank Rana Kapoor in connection with the loan granted to Ezeego One Travels and Tours (EOTTL), a group company of Cox and Kings limited (CKL) of Peter Kerkar and Anil Khandelwal, to the tune of Rs 1060 crore.
Details of fraud
The agency said that the company was driven by Kapoor and he kept on increasing the sanction of funds to M/s EOTTL despite the fact that it was a start up company and there were visible signs of financial stress in the entire CKL Group. The CBI had registered the case against EOTTL and others on October 19, 2020 after receiving a complaint from the chief vigilance officer of the Yes bank on June 12, 2020.
Agency's claims
The agency claimed that during the probe, complicity of Kapoor emerged. The CBI contended, “The investigation revealed that M/s EOTTL was solely driven by accused Rana Kapoor in assistance with Peter Kerkar and Anil Khandelwal and lower management of the bank was left just to execute his directions. Due to his initiative the bank officer was persuaded to sanction a loan of Rs1060 crore to the company despite weak financial conditions of the borrower.”
The agency said that the company defaulted on the repayment of the loan and promoters of the company also failed to honour the personal guarantee executed in this regard.
The agency further claimed that it is contended that accused Kapoor had abused his official position as CMD of the Bank and directed that short term loan of Rs350 crore may be sanctioned and disbursed to M/s EOTTL without any additional security. Therefore, Kapoor is required to be examined with regard to sanction loans to the tune of Rs1060 crore,” CBI said.
The court while granting permission to interrogate Kapoor in prison said that permission is required to be given for further investigation.
