New Delhi, Dec 31 | The Enforcement Directorate (ED) has seized gold and diamond jewellery worth Rs 4.43 crore belonging to the chairman and managing director of a Tamil Nadu based firm in a Rs 1,340 crore bank fraud case by systematically cheating Indian Bank and other banks under a consortium, the agency said on Thursday.
The ED seized the movable properties belonging to K. Subbaraj, Chairman, and K. Pothiraj, Managing Director, Cethar Ltd Trichy, Tamil Nadu; and N.S.K. Kalairaja, Director of NSK Builders Pvt Ltd, Trichy. The assets were seized during a search operation conducted at the residential premises of the accused.
The ED initiated investigations under the Prevention of Money Laundering Act (PMLA) on the basis of FIR registered by Central Bureau of Investigation against Cethar Ltd, and others for availing credit facilities to the tune of Rs 1,340 crores and allegedly committing systematic fraud upon and cheating Indian Bank and other banks under the consortium.
During the course of search, gold and diamond jewellery worth Rs 1.77 crore along with several property documents were seized from the residence of Subbaraj and certain property documents, incriminating evidences and digital evidences were also seized from the other premises.
Further gold and diamond jewellery worth Rs 2.3 crore belonging to Subbaraj and Rs 35 lakh belonging to Pothiraj from six bank lockers identified during the search of the residential premises have been seized under PMLA.
Investigations by ED indicate that a huge part of the loan amount sanctioned by Indian Bank and the consortium of banks as working capital was allegedly siphoned off and diverted by Cethar Ltd, its chairman and its managing director to their subsidiaries, family members and various companies as bad debts.
It also revealed that substantial part of the loan money was transferred to N.S.K. Builders in the guise of constructions.