#BankLoanFraud: ED raids 9 places in Tamil Nadu

India

08 Sep 2018

TN: ED raids 9 places in Rs. 90cr bank fraud

The Enforcement Directorate (ED) on Saturday conducted searches at nine locations in Tamil Nadu in connection with an alleged Rs. 90 crore bank loan fraud money laundering case, officials said.

Searches are being conducted at Virudhunagar, Madurai, and Coimbatore in connection with its probe involving Indhumathi Refineries Pvt Ltd (IRPL).

A criminal case under the Prevention of Money Laundering Act (PMLA) has been filed.

The case

ED raids residential and business premises linked to R Shenbagan

ED raids residential and business premises linked to R Shenbagan

The company, IRPL, is managed by R Shenbagan and others. Residential and business premises linked to him are being raided, officials said.

"IRPL was enjoying cash credit facilities, Letter of Credit (LOC) facilities and term loan from State Bank of India's overseas branch in Chennai," they said.

The ED has filed its PMLA case against the firm based on a CBI FIR.

Bank loans by SBI

Indhumathi Refineries caused a loss of Rs. 90cr to SBI

"It (IRPL) had availed a total of 46 LOCs from the SBI which were issued against bogus firms/fake invoices for a value of around Rs. 87.36 crore," ED said.

"The amount was devolved on the bank later due to insufficient funds in their account and also diverted the business proceeds which resulted into pecuniary loss of around Rs. 90 crore to SBI," it added.

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Bank Fraud

Bank Loan

Criminals

Fraud

Money Laundering

State Bank of India (SBI)

Tamil Nadu

Tax Evasion

CBI FIR

ED

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