Updated: September 8, 2018 5:08:01 pm
The Enforcement Directorate on Saturday conducted a series of raids in Tamil Nadu in connection with a bank loan fraud case worth Rs 90 crore involving Indhumathi Refineries Private Limited, PTI reported. The raids were conducted at nine locations in the state.
The agency conducted raids on the premises of Indhumathi Refineries for allegedly causing a loss to the tune of Rs 90 crore to the State Bank of India. Searches are being conducted at Virudhunagar, Madurai and Coimbatore officials said adding that a criminal case under the Prevention of Money Laundering Act (PMLA) has been filed. The raids are being conducted at premises linked to R Shenbagan who manages the company.
“IRPL was enjoying cash credit facilities, Letter of Credit (LOC) facilities and term loan from State Bank of India’s overseas branch in Chennai. It 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 which was devolved on the bank later due to insufficient funds in their account and also diverted the business proceeds which resulted into a pecuniary loss of around Rs 90 crore to SBI,” the ED said in its complaint.
Based on CBI FIR and chargesheet against R Shenbagan the ED has filed its PMLA case against the firm.
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