The Economic Offenses Wing (EOW) of the Crime Branch has arrested the Managing Director (MD) of a private finance company in Trichy, Tamil Nadu in connection with a 5 crore rupee fraud case registered in Bhubaneswar.
The accused, identified as S. Kathiresan, was arrested in the village of Gnanaoli on August 8 and taken to Odisha in pre-trial detention on Tuesday. Kathiseran, Managing Director of Jagannatha Financial Services Limited and CEO of KAS Foundation, had obtained a loan of Rs 5 crore from Corporation Bank (now Union Bank of India) in 2009. He was arrested on the basis of a complaint filed by KN Narasimha. , then managing director of the former Corporation Bank. The complainant alleged that the accused used the loan for the purpose of loaning the same amount to self-help groups and joint responsibility groups. After the sanction of the Rs 5 crore loan to Jagannatha Financial Services, the company subsequently failed to pay the installments and eventually the account became NPA on November 1, 2009 with an outstanding balance of around Rs. 5, 63 crore, said the EOW.
The preliminary investigation revealed that Kathiseran disbursed the loan to various non-existent farmers and submitted false documents to the bank with criminal intent to defraud the bank.
The entire amount was embezzled by the defendant, the EOW said. “After a case was registered in this regard, the accused fled. After having escaped arrest for a long time, he was arrested from the village of Gnanaoli in Trichy (Tamilnadu). The investigation into the case is continuing, ”added EOW.