Cox & Kings clarifies on Mumbai policy enquiry in IndusInd Bank case; stock clocks upper circuit limit

Investors tapped the travel firm's stock on exchanges after it intimated exchanges about no such actions taken from the Mumbai police.

Jul 23, 2020 02:07 IST India Infoline News Service

The travel and tourism firm, Cox & Kings, has clarified over the Mumbai policy enquiry in regards to IndusInd Bank case where the latter has reportedly filed a complaint against the former for defrauding Rs20cr. Investors tapped the travel firm's stock on exchanges after it intimated exchanges about no such actions taken from the Mumbai police.

At around 2.14 PM, the Cox & Kings stock was trading at the upper circuit limit of Rs1.71 per piece higher by 4.91% on Sensex. The company has maintained the upper price band throughout the trading session.

Cox & Kings clarified exchanges by saying, "Kindly be informed that Cox & Kings Limited (“Company”) is undergoing Corporate Insolvency Resolution Process (“CIRP”) vide NCLT order dated October 22, 2019. As per section 17 (1) of Insolvency Bankruptcy Code, 2016 (IBC, 2016), the powers of the Board of Directors of the Company were suspended since the commencement date of CIRP (i.e. October 22, 2019) and were earlier exercised by Interim Resolution Professional till the undersigned, Ashutosh Agarwala was appointed as Resolution Professional (“RP”) of the Company vide NCLT order dated January 10, 2020."

Thereby, Cox & Kings further added, "Kindly be informed that there is no written communication received from the Mumbai police on enquiry against the Company. Till date, we have no information from Mumbai police in respect of any case against the Company."

The stock exchanges had sought clarification over an Economic Times new article titled, "Mumbai Police begins Cox & Kings' enquiry in the IndusInd Bank case."

According to the news article date July 18, the Mumbai Police have commenced a preliminary enquiry against Cox & Kings for allegedly defrauding IndusInd Bank of around Rs240cr.

Also, the bank reportedly has filed a complaint accusing the travel services firm of defaulting on the repayment of commercial paper starting June last year.

Related Story