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Bank Fraud: Enforcement Directorate Raids Indhumathi Refineries

It is alleged that the company, managed by R. Shenbagan and others, had availed a total of 46 Letters of Credit from the SBI.

Bank Fraud: Enforcement Directorate Raids Indhumathi Refineries
Bank Fraud: Enforcement Directorate Raids Indhumathi Refineries
outlookindia.com
2018-09-08T17:36:15+0530

The Enforcement Directorate (ED) conducted a series of raids in Tamil Nadu in connection with an alleged Rs 90 crore bank loan fraud money laundering case involving Ms. Indhumathi Refineries Pvt. Ltd (IRPL).

According to a PTI report, searches are being conducted at Virudhunagar, Madurai and Coimbatore. The firm is based in Virudhunagar district.

It is alleged that the company, managed by R. Shenbagan and others, had availed a total of 46 Letters of Credit from the State Bank of India (SBI), which were issued against bogus invoices. A criminal case under the Prevention of Money Laundering Act (PMLA) has been filed against R Shenbagan.

“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,” PTI reported.

Further reports claimed that the bank lodged a complaint with the Central Bureau of Investigation (CBI), which subsequently registered an FIR and filed a charge sheet.

(With PTI inputs)

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