The Economic Offences Wing (EOW) of the Crime Branch has arrested the Managing Director (MD) of a private finance company from Trichy, Tamil Nadu in connection with a Rs 5 crore fraud case registered in Bhubaneswar.
The accused, identified as S. Kathiresan was arrested from Gnanaoli village on August 8 and was brought to Odisha on transit remand today.
Kathiseran, the Managing Director of M/s Jagannatha Financial Services Ltd & Chief Executive Officer of M/s KAS Foundation, had availed a loan of Rs 5 crores from the erstwhile Corporation Bank (now Union Bank of India) in 2009. He was arrested on the basis of a complaint filed by K.N. Narasimha, the then Chief Manager of the erstwhile Corporation Bank.
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Narasimha had alleged that the accused had taken the loan for the purpose of lending the same amount to the SHG/ Joint Liability Groups.
After the sanction of the loan of Rs 5 crore in favour of M/s Jagannatha Financial Services Ltd, the company subsequently failed to pay the installments and finally the account turned NPA on 01.11.2009 with an outstanding balance of about Rs. 5.63 crore, EOW said in a release.
Preliminary investigation revealed that Kathiseran had disbursed the loan to various non-existent agriculturists and submitted false documents to the bank with a criminal intent to defraud the bank. The entire amount was misappropriated by the accused, the EOW said.
“After a case in this connection was registered, the accused was absconding. After evading arrest for long, he was arrested from Gnanaoli village at Trichy (Tamilnadu). The investigation of the case is continuing,” the EOW release added.