Bank fraud case: ED attaches six properties in Tamil Nadu

CHENNAI: The Enforcement Directorate, Chennai, has attached six immovable properties, worth Rs 20.65 crore, of S Galeel Rahman under the Prevention of Money Laundering Act, 2002(PMLA) in a bank fraud case.
The attached properties are located in different parts of Tamil Nadu. They are in the form of a factory building along with land measuring 2.92 acres at Konamedu Industrial Estate, Vaniyambadi, a residential flat in Chennai and plots in Vellore, according to an official release.
The case pertains to investigations initiated by the ED under the PMLA based on an FIR registered by the CBI against Tomy G Poovattil, S Galeel Rahman and others for defrauding Indian Bank’s Guindy branch in Chennai under Section 120 B r/w 420 of Indian Penal Code and Section 13(2) r/w 13(1) (d) of the Prevention of Corruption Act, 1988.
Investigation under PMLA revealed that during the period from 2012 to 2014, Tomy G Poovattil, the then bank manager of the Guindy branch of Indian Bank, had conspired with Galeel Rahman, Sirajuddin and others to cheat the bank by fraudulently sanctioning overdraft and credit facilities to various entities.
Rahman managed to avail a loan on the basis of fabricated documents in the name of his firms namely M/s. Nafisa Overseas and M/s. Safa Leathers. He had forged the documents to inflate the properties which were placed as collateral security. Over a period, these credit facilities became nonperforming assets. Interest rose Rs. 23.46 crore as on date of filing of the FIR.
Investigations revealed that these loan proceeds were laundered among a number of bank accounts maintained by the accused, his family members and associates. Investigations also revealed that the accused had made a maze of transactions to project the fraudulent transactions as proceeds of genuine trade-based transactions for availing further loans from the bank. The sanctioned amounts were diverted and siphoned off.