CBI files case against former AIADMK minister

Madurai: CBI has registered a case against a former AIADMK minister and 13 others for allegedly cheating a nationalised bank to the tune of over Rs 82 lakh by availing loans in violation of norms during 2007-09.

The case has been filed against Dr Ammamuthu Pillai, who was a minister in the Jayalalithaa cabinet during 1991-96, then Chief Manager of Indian Overseas Bank`s Palayamkottai branch in Tirunelveli District, businessman S P Shenbagamoorthy and others.

CBI officials said the bank manager G Balasubraman had entered into a criminal conspiracy with Pillai and Shenbagamoorthy and abusing his official position had “dishonestly” sanctioned and disbursed cash credits without following norms and procedures besides accepting false documents. In its FIR, CBI said Shenbagamoorthy, proprietor of Pavana Steels, had submitted an application on February 20, 2009 for sanction of credit limit of Rs 95 lakhs to his firm.

Balasubramanian had “dishonestly” processed the application and sanctioned cash credit limit under a trade finance scheme on March 2, 2009 without complying with the instructions of the bank`s regional office.

The bank official had also allowed withdrawal of the entire money of Rs 82,34,155 through cash and third party account transfers. The money was diverted for the misuse of Pillai and one N Kalyanasundaram, the FIR said. Six other fraudulent loan disbursements were also cited in the FIR.