The city police’s Economic Offences Wing is probing complaints registered by banks, Kerkar and former executives of Cox & Kings, accusing each other of causing losses to the company.
“The LoC has been opened as a precautionary measure to ensure that the accused don’t flee the country. It is based on the first information report filed by Kotak Mahindra Bank against the promoters and erstwhile directors of Cox & Kings,” said an official privy to the development.
An LoC is used by authorities to check whether a travelling person is wanted by law enforcement agencies.
In its complaint, Kotak Mahindra Bank alleged fraud of over ₹170 crore by the promoters and former directors of the company. The city police had recently searched the offices and residences of Kerkar, Khandelwal and some former directors.
Kerkar filed counter-FIRs against the banks and some key former company executives last month, accusing them of causing a loss of more than ₹5,500 crore to the company and its affiliates.