The Enforcement Directorate on Wednesday said it has arrested B. Madan, producer of Chennai-based film production and distribution company Vendhar movies, for cheating people of Rs 91 crore on the pretext of providing admission in medical college in 2016.
Madan was arrested on Tuesday night under the Prevention of Money Laundering Act, following his day-long questioning at the ED office here.
“He allegedly cheated over 100 parents of Rs 91 crore in the guise of providing admission to their wards in medical seats in Chennai-based SRM Group of Institutions,” an ED official said.
The official said the ED registered a money laundering case against Madan and others based on the FIR lodged by Tamil Nadu Police last year.
The police in its FIR has mentioned that Madan collected several crores of money in the guise of admission into SRM Medical College and then absconded.
“About 133 parents have filed complaints against Madan,” the official said.
Madan was finally arrested by Tamil Nadu Police in November last year and then released on bail after spending some time in jail.
Madan in his statements had initially admitted that he collected about Rs 91 crore from over 100 parents for admission in MBBS and Post Graduation seats in SRM Medical College, the official said.
He however claimed that he had paid those amounts on weekly basis to SRM Management.
The management denied of receiving any amount and said the college followed a prescribed procedure for admissions, and Madan had no role in the admission process.
Madan has acquired several properties during this period, said the official, but did not reveal the source of funds.