Bhubaneswar: Officials of the Economic Offences Wing (EOW) office in Bhubaneswar arrested a man August 8 for his alleged involvement of fraud of Rs 5.62 crore pertaining to the branch of Corporation Bank in this city. The man identified as S Kathiresan of Trichinapalli district In Tamil Nadu was arrested from Gnanaoli village under Thuvakudi police limits. A case (No. 05 of 2015) had been registered against Kathiresan by the Corporation Bank branch officials.
Following his arrest, the man was produced before Judicial Magistrate-IV, Trichinapalli August 9. He will now be produced before the Ld Court of SDJM, Bhubaneswar August 11, after being brought on transit remand.
In a press release, the EOW said the case was registered February 9, 2015 on the basis of complaint filed by KN Narasimha, the then Chief Manager of Corporation Bank (which has since merged with Union Bank of India). Narasimha alleged in 2009, Kathiresan was working as Managing Director of M/s Jagannatha Financial Services Ltd & Chief Executive Officer of M/s KAS Foundation. He had availed a loan amounting to Rs 5 crore for the purpose of lending the same to the SHG/ Joint Liability Group. Later, the company failed to pay the installments and finally the account was declared as NPA, November 1, 2011 with outstanding balance of about Rs. 5.63 crore.
It was later found out Kathiresan had disbursed the amount as loan to agriculturists who did not exist. He had also submitted fabricated and false documents to the bank with criminal intention to commit fraud. The bank in its complaint alleged that Kathiresan had misappropriated the huge amount for his own use. EOW officials said that the accused had gone underground since the registration of the case.
A detailed probe is underway, it was learnt.
PNN