Hyderabad: The Central Bureau of Investigation has booked a case against Jagdish Khattar, former Managing Director of Maruti Suzuki India, on December 24 for bank fraud. The agency has accused Khattar of cheating Punjab National Bank after taking a loan of Rs 110 crore in 2009 for his company Carnation Auto India.
The investigative agency has accused Khattar of “criminal conspiracy, criminal breach of trust, cheating, and criminal misconduct” in the FIR filed on December 20. The agency filed the FIR followed by a complaint against Khattar after the latter failed to repay the loan amount to Punjab National Bank.
The complainant, KN Bhardwaj — Chief Manager of PNB (Delhi) — claims that they had declared the loan as a Non-Performing Asset (NPA) in 2015, with effect from 2012. “Further, the accused borrowed dishonestly and fraudulently to cheat the bank. He sold goods pledged to the bank without its permission and diverted the funds. This act was a criminal breach of trust and cheating, thereby creating a wrongful loss to the bank and corresponding gain to themselves,” the FIR said.
As per the FIR, the bank had also conducted a forensic audit. Reportedly, the accused had sold certain fixed assets costing Rs 6,692.48 lakh for a consideration amount of Rs 455.89 lakh without the approval of the bank. Allegedly, Khattar did not deposit sale proceeds with the bank.
Moreover, the complaint mentions that the accused borrower had “fraudulently extended loans and advances to its sister concern/subsidiaries”. The three companies, which are guarantors, are namely Khattar Auto India, Carnation Realty and Carnation Insurance Broking Company. However, as per the Central Bureau of Investigation, no direct role of guarantors has been evident since they are not named in the FIR.
Jagdish Khattar had been associated with one of India’s top automobile companies, Maruti Suzuki, from 1993 to 2007.