Jagdish Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as Managing Director of the company, CBI officials said. (Photo: Twitter/jagdishkhattar)

Former managing director of Maruti Udyog, Jagdish Khattar, has been booked by the Central Bureau of Investigation (CBI) in connection with a Rs 110 crore bank loan fraud.

CBI officials have filed an FIR in the case, where it has named Khattar and his company Carnation Auto India Limited for allegedly causing losses of Rs 110 crore to Punjab National Bank (PNB).

Khattar was with Maruti Udyog Limited from 1993 to 2007 when he retired as managing director of the company, CBI officials said.

After retiring from Maruti Udyog, Khattar launched Carnation Auto India Pvt Ltd and took a loan of Rs 170 crore sanctioned in 2009. The loan was subsequently declared a non-performing asset in 2015 with effect from 2012, according to the CBI FIR.

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

A forensic audit was conducted by the bank through KG Somani & Company which reported that the accused borrower had dishonestly and fraudulently sold the fixed assets costing Rs 66.9 crore for a considerable amount of Rs 45.6 crore without the approval of the bank whereas the said assets were furnished as security to the bank.

Sources say, further, after the sale, the accused borrower did not deposit sale proceeds with the bank. It was also found that the accused borrower had dishonestly and fraudulently extended loans and advances to its sister concern/subsidiaries also. Thereby it has committed misappropriation of bank funds and has put them for personal use, added the source.

As per the norms and procedure of the bank, the concerned bank officials are required to verify the stock every month and also to cross check the debtors and creditors which appears to have not been done and role of bank officials will be looked into during the course of investigation, said a CBI source.

The bank in its complaint has mentioned the names of 5 accused persons out of which three companies are guarantors namely

M/s Khattar Auto India Pvt Ltd, M/s Carnation Realty Pvt. Ltd. and M/s Carnation Insurance Broking Company Pvt. Ltd.

However, during verification no direct role of guarantors in committing the fraud with the bank came to light as such they are not named in the FIR. However, their role in detail will be ascertained during investigation, added the source.