In a major development that has sent ripples through India’s travel industry, Mumbai Police have filed a case against seven former directors and senior officials of Cox & Kings Limited for allegedly defrauding SBI Cards and Payment Services Ltd of ₹105.93 crore. The accused are alleged to have manipulated financial records and misused multiple corporate credit cards over several years, eventually defaulting on massive outstanding payments.
The police action comes after a detailed complaint filed by the financial services company, which claimed that Cox & Kings had indulged in serious financial misconduct, leading to substantial losses.
A Multi-Year Financial Manipulation
According to the First Information Report (FIR), the fraudulent activities took place between 2013 and 2019. During this period, Cox & Kings reportedly obtained seven corporate credit cards from SBI Cards by submitting forged balance sheets and manipulated financial records to appear financially sound and creditworthy.
Over six years, the company is said to have transacted nearly ₹1,541 crore through these cards, while managing to repay about ₹1,467 crore. However, as the company’s financial situation worsened, it failed to pay the remaining dues, leading to a staggering outstanding amount of ₹105.93 crore.
The FIR names seven key individuals, including Ajay Ajit Peter Kerkar, Urshila Ajit Kerkar, Anthony Good, Pessy Patel, Mahalinga Narayan, Anil Khandelwal (CFO), and Naresh Jain (internal auditor), along with the company itself as the accused parties.
Corporate Collapse and Mounting Liabilities
By June 2019, sensing the company’s apparent financial stability, SBI Cards had raised Cox & Kings’ corporate credit limit to ₹90 crore. However, within months, the company defaulted on tax payments, including Goods and Services Tax (GST) and Tax Deducted at Source (TDS), signaling deeper financial trouble.
The company eventually filed for bankruptcy and informed market regulators including SEBI, NSE, and BSE about its precarious financial state. The financial crisis left numerous investors, financial institutions, and customers in distress, and the case has since remained one of India’s most significant corporate financial scandals in recent years.
Legal Action and Industry Impact
Based on the complaint, Mumbai Police have registered a case under various sections of the Indian Penal Code (IPC), including cheating, forgery, criminal breach of trust, and criminal conspiracy. The Economic Offences Wing (EOW) of the Mumbai Police has taken over the investigation.
This case is part of a worrying pattern in India’s travel sector, where financial fraud cases involving tour operators and travel agencies have surfaced frequently in recent years. Several cases have involved consumers being duped, tour operators defaulting on payments, and corporate fraud, prompting calls for tighter regulatory oversight in the sector.
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What This Means for Consumers and Investors
For consumers and financial institutions alike, this case serves as a serious reminder of the importance of due diligence before engaging with travel service providers or extending financial credit. Legal experts suggest that institutions adopt stricter vetting processes, while travelers and business clients must verify a company’s financial and legal standing.
Authorities have also urged customers who have experienced financial fraud from any travel operator to promptly file complaints with local police and consumer forums. Meanwhile, the unfolding Cox & Kings case will likely influence financial governance and auditing practices in the country’s travel and tourism industry in the years ahead.