This is in connection with a money laundering probe involving the Yes Bank and its former director-promoter Rana Kapoor, the agency said.
The Enforcement Directorate on Monday conducted searches at five locations linked to Cox & Kings in Mumbai, in connection with a money laundering probe involving the Yes Bank and its former director-promoter Rana Kapoor, according to the agency.
In October 2019, the National Company Law Tribunal in Mumbai had admitted a plea of one of the lenders to initiate insolvency proceedings against Cox & Kings. The Yes Bank had an exposure of over 2,260 crore towards the tours and travel company.
As it defaulted on repayment, the Yes Bank had acquired 18.55% stake in Cox & Kings and 30% stake in the sister concern, Ezeego One Travel & Tours, by invoking the pledged shares in July last year.
In March, in the Yes Bank case, the ED had summoned Peter Kerkar of Cox & Kings for recording his statement under the Prevention of Money Laundering Act.
According to a forensic audit report prepared at the instance of the bank in February, transactions of Cox & Kings worth about 21,000 crore came under the scanner for suspected diversion of funds between 2015 and 2019. Several other alleged financial irregularities were pointed out.
Earlier, the ED filed a chargesheet in the Yes Bank case, listing the credit watch list prepared by the bank in March 2019. The list included Cox & Kings and the Dewan Housing Finance Limited (DHFL).
The money laundering probe is based on a case registered by the Central Bureau of Investigation on March 7, against Mr. Rana and others. It pertains to 3,700 crore in loans extended to the DHFL allegedly in lieu of investment to the tune of 600 crore in an entity linked to Mr. Kapoors family members.
Last month, the ED arrested two of the accused persons, Kapil and Dheeraj Wadhawan, who were first arrested by the CBI. In the CBI case, Mr. Kapil Wadhawan is mentioned as promoter-director of DHFL and Mr. Dheeraj Wadhawan as director of the RKW Developers Private Limited.