Kingfisher Airlines hit by Rs 17 cr fraud through credit cards

Mateen Hafeez I TNN

Mumbai: Kingfisher airlines on Wednesday complained to the Economic Offences Wing (EOW) of the city crime branch of an online ticket booking fraud through credit cards saying the airline was duped to the tune of Rs 17 crore. The EOW suspect a nationwide organised racket behind the fraud.

This is the first time an airline has lodged a fraud complaint. In most cases, the bank whose credit cards are used lodges a complaint.

The airline handed over an application to the top cops of the EOW who asked the banking unit to probe the matter. Documents submitted by the airline say that they were charged back Rs 17 crore from the banks. According to sources, usually when the amount involved in the fraud case is not very high, subsidiary banks charge back the amount to big banks. However, in this case ICICI Bank has charged the amount back to Kingfisher.

"The accused book tickets online using credit card numbers mostly obtained from some restaurant, petrol pump or shopping mall employee,’’ an officer said. They then sell the tickets at a discount. A middle man, a commission agent and many others are also involved. We suspect the involvement of an organised syndicate in the matter.’’ EOW sources said that online tickets for Kingfisher were booked from various parts of the country including Mumbai, Chennai, Kolkata, Bangalore, New Delhi etc.

Officials of the airline met the police in the crime branch near Crawford Market on Wednesday and were asked to furnish documents of all the transactions and credit card numbers. “The transactions in this case took place between July 2005 and November 2006,’’ said a police officer. The police have also asked the airline to produce the exact amount of fraud in the Mumbai jurisdiction. A formal FIR is yet to be registered, sources said.