CBI Books Maruti Udyog MD Jagdish Khattar In PNB Fraud Case

Maruti Udyog MD Jagdish Khattar - Sakshi Post

NEW DELHI: The Central Bureau of Investigation has booked former Managing Director of Maruti Udyog, Jagdish Khattar, for alleged bank loan fraud of Rs 110 crore by his new company.

In its FIR filed recently, the CBI has named Khattar and his company Carnation Auto India Limited for allegedly causing a loss of Rs 110 crore to Punjab National Bank.

The CBI had carried out searches at the premises of 77-year old Khattar and Carnation Auto on Monday evening.

Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as Managing Director of the company, they said.

After retirement, he had launched Carnation for which he got a loan of Rs 170 crore in 2009. The loan was declared non-performing asset in 2015 with effect from 2012, the FIR said.

The agency has registered an FIR under IPC sections related to criminal conspiracy and cheating on a complaint from Punjab National Bank, the officials said.

"Carnation is a bonafide business failure. There is no wrong doing. Even an audit was conducted and nothing amiss was found. The bank has referred it to CBI as a part of the process followed by them. Search was conducted by CBI but nothing incriminating was found. We will be vindicated once the investigation is completed.” Khattar told a news agency.

The CBI has alleged that Khattar and his company dishonestly and fraudulently sold the goods hypothecated to the bank without its permission and diverted the funds thereby causing criminal breach of trust and cheating that caused wrongful loss to the bank and gain to Khattar and his company.

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