Tamil Nadu: ED attaches properties worth Rs 1.63 crores in bank fraud case

The Enforcement Directorate (ED) on Thursday attached properties worth Rs 1.63 crores of a former manager of the Indian Bank and others in a bank fraud case.

"ED attaches under Prevention of Money Laundering Act (PMLA), 22 immovable properties in Dindugal, Madurai, Sivagangai and Tiruvallur districts of Tamil Nadu totaling to Rs 1.63 crores of K Pandiyarajan, former Manager, Indian Bank and others in a bank fraud case," ED said in a release.

"The attached immovable properties are in the form of Agricultural land measuring 14.93 acres in Vilpatti Village, Kodaikanal and 11.185 acres of land in other parts of Tamil Nadu, total 18064.75 square feet of housing plots in various parts of Tamil Nadu and 2979 square feet of land and building in Madurai. The attached assets were registered in the name of family members of accused K. Pandiyarajan and others," the release added.

The ED initiated an investigation under the PMLA based on FIR filed by CBI, ACB, Chennai against K Pandiyarajan and others under Sections 120 B read with 420 of IPC, 1860 and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 for defrauding Indian Bank at Kodaikanal and Paramakudi amounting to Rs 2.85 crores.

During the course of the investigation under PMLA, it was revealed that accused K Pandiyarajan, during his tenure (2012-13) as manager of the Kodaikanal branch of Indian Bank, had conspired with Venkatesh Kannan and Jeyapaul Thomasraj (private person) to cheat the Indian Bank by sanctioning housing loans amounting to Rs 60.77 lakhs fraudulently in the names of Venkatesh Kannan and others, the official release said.

This money was utilised to purchase a big parcel of land in Kodaikanal, which was further divided into plots. Many of these plots were registered in the name of the aforesaid manager's wife and also Venkatesh Kannan, Jeyapaul Thomasraj, K Athinarayanan without any monetary consideration. The remaining plots were sold to various persons. Further, no construction was carried out by the loanees and none of the sanctioned housing loans were repaid and thereby causing loss to the Indian Bank, the release added.

Similarly, the accused K Pandiyarajan during his tenure as chief manager/branch manager of Indian Bank, Paramakkudi Branch had also fraudulently sanctioned housing loans in the names of K Athinarayanan and R Dhanalakshmi and also business loans for their non-existent firms during the year 2015. The proceeds of all these four loans were diverted by K Athinarayanan to various accounts controlled by him and utilised for other purposes, ED said.

"Investigation under PMLA also revealed that a major part of these proceeds of crime was laundered and invested in 22 immovable properties amounting to Rs 1.63 crores in Dindugal, Madurai, Sivagangai and Tiruvallur districts of Tamil Nadu in the names of various persons and the same were projected as "Untainted Properties" to conceal their criminal origins. Accordingly, Provisional Attachment Order was issued attaching these immovable assets totaling to Rs 1.63 crores under PMLA," it added.

Further investigation is under progress.

( With inputs from ANI )