The Enforcement Directorate was carrying out searches at five locations of travel firm Cox & Kings in Mumbai, various news channels reported on Monday. Reportedly, the searches are on to find proof of quid pro quo dealings between beleaguered Yes Bank co-founder Rana Kapoor and Cox & Kings.
The teams of the central agency are carrying out the searches under the Prevention of Money Laundering Act (PMLA).
This is the second borrower on whose premises raids are being conducted by the ED in the Yes Bank scam case. In the past, the ED had raided DHFL and also arrested its promoters in May.
According to a list of financial creditors prepared by the resolution professional of the debt-ridden firm in March, Yes Bank was the biggest lender to loan defaulter travel firm Cox & Kings with total claims of over Rs 2,285 crore.
Financial creditors have submitted a claim of over Rs 5,911 crore for debt they provided to Cox & Kings, according to a regulatory filing by the company.
Cox & Kings is currently going through the corporate insolvency resolution process.
The Mumbai bench of the National Company Law Tribunal had directed to initiate insolvency proceedings against Cox & Kings in October last year over the plea filed by Rattan India Finance, claiming default on a loan of Rs 30 crore by the travel company.
