CBI Raids Maruti Suzuki’s Former MD Jagdish Khattar For Cheating Punjab National Bank To The Tune Of Rs 110 Crore

The Central Bureau of Investigation (CBI) has raided Maruti Suzuki India Limited’s (MSIL) former managing director Jagdish Khattar for alleged criminal conspiracy, criminal misconduct and cheating Punjab National Bank (PNB) to the tune of Rs 110 crore.

The CBI has carried out searches at the residential premises of 77-year-old Khattar and his company Carnation Auto, according to CBI officials.

In a case registered by the probe agency on December 20, based on a complaint by the 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 amount.

It may be recalled that Khattar had launched Carnation Realty Pvt Ltd and Carnation Broking for which he was granted a loan of Rs 170 crore, which was sanctioned in 2009. The loan was declared a non- performing asset (NPA) in 2015 with effect from 2012, according to the First Information Report (FIR) filed by the CBI.

According to the FIR filed by the CBI, the accused borrowers dishonestly and fraudulently sold off the goods hypothecated to the bank without its permission and diverted the funds thereby causing wrongful loss was caused to the PNB.

The CBI has also alleged that PNB’s forensic audit found that Khattar had fraudulently sold fixed assets amounting to Rs 66.92 crore for a mere Rs4.55 crore without the bank’s prior approval, especially since these assets had been furnished to the bank as collateral.

The CBI stated that an investigation had been launched to look into the matter though a look-out circular against Khattar has not yet been issued.