Jagdish Khattar former Managing Director of Maruti Suzuki India Limited’s (MSIL) has been charged by the Central Bureau of Investigation (CBI) in an alleged criminal conspiracy, criminal misconduct and cheating Punjab National Bank to the tune of Rs 110 crore.
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 with the sale and purchase of second-hand vehicles.
The agency’s FIR stated that “The accused borrowed 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 a criminal breach of trust and cheating causing wrongful loss to the bank and corresponding gain to themselves.”
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.
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