Ajit Menon's statement - Police detain the head of Meininger Hotels in India.
Ajit Menon, chief executive of the German hotel chain Meininger Hotels, was apprehended at the airport on April 9 after flying from London to Kochi in the Indian state of Kerala. Indian media outlets like "Hindustan Times" reported on this.
The Economic Offences Wing (EOW) of the Mumbai police arrested Menon in connection with a suspected bank fraud case. Cox & Kings Financial Services, a travel company, is believed to be at the heart of this matter. Menon has long been a close associate of Cox & Kings owner Ajay Ajit Peter Kerkar, who is currently detained.
Indian media reports state that Menon was detained based on a Look Out Circular (LOC), which is essentially a wanted letter used by authorities to monitor and restrict the movement of people wanted by the police. An official source told "The Economic Times" that Menon appeared before a Mumbai court on April 9, where he was held in custody until April 15. German media, like the comparison portal "Tageskarte," were the first to cover the news.
Meininger Hotels: The CEO is being questioned
As the head of 38 Meininger hotels throughout Europe and one in Israel, Ajit Menon is responsible for the company's operations. A Meininger Hotels spokesperson confirmed to Capital that Menon was taken into custody for questioning during a visit to India. "From what we currently know, this arrest is in connection with past business activities in India," she said. "Ajit Menon had nothing to do with these activities," she clarified. The company declined to reveal whose business practices were under investigation.
The Mumbai Police Economic Offenses Department didn't comment on the situation when Capital reached out for a statement.
According to Indian press reports, Menon was targeted by the EOW as they investigated an alleged bank fraud perpetrated by Cox & Kings Financial Services in 2021. This company was affiliated with the travelling operator Cox & Kings, which provided foreign currency services and financial products such as student loans in India before it declared bankruptcy. Cox & Kings and Kerkar are suspected of defrauding Yes Bank in India of around 4 billion rupees, which is roughly equivalent to 45 million euros.
Allegedly falsified accounts and loans
The Mumbai police allege that Menon, who never officially held the position of managing director at Cox & Kings Financial Services, was introduced by Kerkar as such at various gatherings. It's believed that Menon participated in discussions about fabricating the company's financial records to present a more favourable picture of its financial standing.
As a result, Cox & Kings Financial Services was approved for a 4 billion rupee loan, but only 3.96 billion rupees (about 43 million euros) were used for their intended purpose. The remaining 560 million rupees--equivalent to 6.2 million euros--were allegedly diverted to a company managed by Menon.
The "Indian Express" also claimed that Menon ran the European operations of the Cox & Kings Group companies. Cox & Kings officials notified the Indian authorities that Menon oversaw all financial transactions relating to the loan amounts and policy decisions.
When Capital queried Meininger Hotels about Menon's connection with Kerkar, a spokesperson only highlighted that the arrest had no connection to Menon's role at Meininger Hotels. The company management team will handle ongoing activities, guaranteeing that services remain available. The Meininger head office functions as a service provider for the hotels, managing administrative tasks such as sales, marketing, and personnel management.
Extensive investigations against Kerkar
Menon's arrest seems to be part of a larger investigation into Ajay Ajit Peter Kerkar, who is already in custody. Several legal actions are underway against the bankrupt tour operator, Cox & Kings, as well as the company's executives.
"Hindustan Times" reports that Kerkar, his wife Urshila Kerkar, and others have been charged in the case concerning the sister company Cox & Kings Financial Services Ltd. The charges involve a complaint filed by Ashish Vinod Joshi, who oversees corruption investigations at India's Yes Bank. The accused are alleged to have deceived Yes Bank by presenting falsified financial statements to maintain a favorable credit rating.
A long-term relationship existed between the Meininger hotel chain and tour operator Cox & Kings. Meininger Hotels Limited, a part of the hotel chain, was owned by the British tourism group Holidaybreak Limited. Holidaybreak eventually became a completely owned subsidiary of Cox & Kings in 2011. Since then, Menon has held significant positions within the company network. In 2011, he was appointed as Strategy Director at Holidaybreak, followed by becoming Deputy CEO of the entire tourism group in May 2013. Menon then took over as CEO of Holidaybreak and its subsidiaries in September 2019, and was also designated as CEO of Meininger Hotels in June 2020.
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Source: www.stern.de
