CHENNAI: The Bank Fraud Investigation Wing of city police arrested a 45-year-old businessman who defaulted on a business loan he took from the State Bank of India (SBI), causing a loss to the tune of Rs 72.5 lakh.
The arrested person, K Velmurugan (45) of Kodambakkam, had approached SBI's Adyar branch seeking a business loan for the expansion of his firm, Annai Casting Pvt Ltd, claiming that he needed the money to buy new machinery for his firm. As he defaulted on paying the interest, the bank conducted enquiries and found that he did not buy the machinery after which they filed a police complaint in November 2024.
Subsequent investigations by the Bank Fraud Investigation Wing revealed that Velmurugan did not invest the loan amount in his business and used it for his personal expenses and defaulted on paying the amount of Rs 72.5 lakh.
Velmurugan was arrested by the city police on Friday. He was produced before the magistrate and remanded in judicial custody.