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CBI probe into loan fraud by cotton firm
The Chennai unit of the CBI is probing a bank fraud case involving senior executives of a cotton yarn manufacturing unit in Tirupur, for allegedly diverting loan money availed from SBI, defaulting repayment and thus causing a loss to the bank to the tune of Rs 27 crore.
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Chennai
The accused are listed as Arun Kumar, his wife Bhadra Devi, his brother Raj Kumar and his wife Chitra, all senior executives of Aegan Industries Ltd, which has its registered office in Bengaluru. The family has interest in hospitality industry as well.
According to the CBI, the accused, along with bank officials conspired to cheat SBI, commercial branch in Erode, and availed loans.
The money was allegedly diverted for other purposes and the loan was declared as non-performing asset in 2016, thus making wrongful loss of Rs 27 crore to the bank and wrongful gain to themselves.
A forensic audit of the account found that the suspects had diverted and mis-utilised the funds.
The company had multiple books of account to misguide about the operation of the company, the CBI FIR said.
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