Nine arrested in Rs 100 crore Chennai bank fraud case – Times of India

CHENNAI: The Central Bureau of Investigation has arrested nine people in connection with a Rs 100 crore fraud that led to a loss of Rs 45.4 crore for Indian Bank.
The accused, identified as Ganesh Natarajan, V Manimozhi, J Selvakumar alias Selvam, K Zakir Hussain, M Vijay Heralld, M Rajesh Singh, S Siyadh, S Afsar and V Sudalaimuthu alias Annachi, wrongly foreclosed/pre-closed fixed deposits of the Chennai Port Trust (CPT) held at the bank, a CBI release on Tuesday said.
The CBI registered a case on July 31, 2020, on a complaint from Indian Bank, Chennai, against two individuals, its Koyambedu branch manager, and other unknown public servants and private entitites for allegedly committing fraud, forgery and impersonation to cheat the bank to the tune of Rs 100.5 crore.
It was also alleged that a loss of Rs 45.4 crore was caused to the bank by way of foreclosure /pre-closure of several term deposits (fixed deposits) created in the name of the CPT and also transferring/withdrawing the said amount through various accounts. According to CBI, the accused conspired and canvassed the bank and the CPT for opening term deposits at the Koyembedu Branch of Indian Bank. Accordingly, 45 term deposits (FDs) were created during the period between March and May 2020.
One of the accused impersonated himself as deputy director (finance) of Chennai Port Trust and opened a fake current account in the name of the CPT at the Koyambedu branch.
After the receipt of investment from the CPT on every occasion, the bank created term deposit receipts (bond) against the said investment. The said bond was received by the accused from the bank directly. Instead of delivering the original bond to the CPT, the accused made duplicate bonds and submitted the forged bonds to the CPT.
Having the original bond in his possession, the accused allegedly presented the same before Indian Bank, Koyambedu branch, and preclosed the term deposits one after another within a few days of creating the term deposits. The money received from the pre-closure of term deposits was allegedly credited into the fake current account created in the name of the CPT by the accused and subsequently transferred to 28 different accounts.
This money was withdrawn by the 28 account holders and handed over to the various accused. The CPT was continuously investing in term deposits and the same was allegedly pre-closed by the accused one after another, after the bonds were created by the bank. A total of Rs 100.57 crore (approx.) was transferred from the CPT in five investments against which 45 term deposits of different amounts were created. Out of the total amount invested, only Rs 55.19 crore could be frozen after the detection of the fraud and remaining Rs 45,40,65,000 was swindled by the accused.
Searches were earlier conducted at 22 locations including at Chennai, Tirunelveli, Tuticorin and Nagercoil which led to recovery of several incriminating documents and material objects.
Eight of the nine arrested were produced before a special judge for CBI cases in Chennai. They were remanded in judicial custody. The remaining one accused, who was arrested from Tirunelveli, was taken on a transit remand from the competent court.