CBI books bank official, two others for Rs 8 crore fraud

The accused were identified as V Vivekanandan, the then forex officer, and T Marimuthu and E Inmbaraj, who run Sri Vani Trading & Co and Muppudathiamman Wood Industries.

In its FIR, the CBI said that Vivekanandan abused his official position and allowed the firms to avail credit facilities in excess of what was sanctioned, and also obtained letter of credit bills, thereby causing loss to the government.

The firms were receiving loans from the 2011 to 2017. The value of the collateral security was stated to be Rs 2.68 crore.

During an inspection in 2018 by concurrent auditor, it was found that though the letters of credit (LC) are sent through Structured Financial Messaging System (SFMS) to the firm, no corresponding entry was made in the Finnacle System.

On the request from the firm, 14 such inland Letters of Credit were opened and transmitted through SFMS without making corresponding entries in Finnacle system. Acceptance messages was sent to presenting bank, enabling the payment to the beneficiary. The fraudulent act was carried out by the help of the forex officer, said the CBI.

The agency also noted that the partners had clandestinely removed the stocks hypothecated to the bank from the factory premises at Senkottai and Tenkasi. When the branch official inspected the premises, no stocks were available there.

The account slipped into non-performing in December 2018 and the balance outstanding was over Rs 8 crore. In pursuance of the criminal conspiracy, the partners in connivance with the bank official diverted the fund and caused the loss to the government exchequer, said the CBI.

Now, a case under IPC sections of cheating, criminal conspiracy besides provisions under Prevention of Corruption Act has been registered.