The Central Bureau of Investigation (CBI) has booked Maruti Suzuki India Limited’s (MSIL) former managing director Jagdish Khattar for alleged criminal conspiracy, criminal misconduct and cheating Punjab National Bank to the tune of Rs110 crore.
In a case registered by the probe agency on 20 December, based on a complaint by Punjab National Bank (PNB), the CBI has alleged that Khattar, along with “unknown public servants”, cheated the bank of the amount, after he had failed to repay the same.
Khattar was with MSIL (then known as Maruti Udyog Limited) from 1993 to 2007 when he retired as Managing Director of the company.
Following his superannuation, Khattar had launched Carnation Realty Pvt Ltd and Carnation Broking for which he got a loan of Rs170 crore sanctioned in 2009. The loan was declared an NPA (non performing asset) in 2015 with effect from 2012, the agency’s FIR said. Carnation was established as a car servicing and repair outlet of various brands. It also dealt in sale and purchase of second-hand vehicles.
“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,” the agency’s FIR stated.
While calls to Khattar went unanswered, the CBI stated that an investigation had been launched to look into the matter. A look-out circular against Khattar has not yet been issued.
The probe agency has also alleged that PNB’s forensic audit found that Khattar had fraudulently sold fixed assets amounting to Rs66.92 crore for a mere Rs4.55 crore without the bank’s prior approval — assets which had actually been furnished to the bank as collateral. Khattar, the agency has alleged, also did not deposit the proceeds of the sale to the bank.