ED attaches properties of former bank manager

CHENNAI: The Enforcement Directorate (ED) has attached 22 immovable properties worth `1.63 crore in Tamil Nadu of former Indian Bank chief manager K Pandiyarajan and others under Prevention of Money Laundering Act, 2002 (PMLA), in  a bank fraud case. 

The attached properties are in the form of agricultural land measuring 14.93 acres in Vilpatti, Kodaikanal and 11.185 acres in other parts of the State, 18,064.75 sqft of housing plots in various parts of TN and 2979 sqft of land and building in Madurai. The assets were registered in the name of family members of Pandiyarajan and others

ED initiated investigation under PMLA based on an FIR filed by CBI, Anti-Corruption Branch (ACB), Chennai against Pandiyarajan, Branch Manager, Indian Bank and others under Sections 120 B read with 420 of IPC, 1860 and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 for defrauding Indian Bank at Kodaikanal and Paramakudi amounting to Rs 2.85 crores. 

During the course of the investigation, it was found that Pandiyarajan, during his tenure (2012-13) as manager of the Kodaikanal branch, had conspired with Venkatesh Kannan and Jeyapaul Thomasraj to cheat the bank by sanctioning housing loans amounting to Rs 60.77 lakh fraudulently in the names of Venkatesh Kannan and others.

This money was utilised to purchase a big parcel of land in Kodaikanal, which was further divided into plots. Many of these plots were registered in the name of his wife and also Venkatesh Kannan, Jeyapaul Thomasraj, K Athinarayanan without any monetary consideration. The remaining plots were sold to various persons. Further, no construction was carried out by the loanees and none of the sanctioned loans were repaid, causing loss to the bank. 

Similarly, Pandiyarajan during his tenure as Chief Manager at Paramakudi Branch, also fraudulently sanctioned housing loans in the names of Athinarayanan and R Dhanalakshmi and also business loans for their non-existent firms in 2015. The proceeds of all these loans were diverted by Athinarayanan to various accounts controlled by him and utilised for other purposes. 

Investigation also revealed that a major part of these Proceeds of Crime were laundered and invested in 22 immovable properties amounting to Rs 1.63 crores in Dindigul, Madurai, Sivaganga and Tiruvallur districts in the names of various persons and the same were projected as “Untainted Properties” to conceal their Criminal Origins.  Accordingly, a Provisional Attachment Order was issued attaching these immovable assets totalling to Rs 1.63 crores under PMLA. Further investigation is under progress, an Enforcement Directorate release stated.