CHENNAI: The Central Bureau of Investigation (CBI) booked a case against a Choolaimedu-based company and four of its directors including the managing director for an alleged loan fraud to the tune of Rs 225 crore based on a complaint given by Indian Overseas Bank.
According to the FIR, the investigating agency said that the bank filed a complaint against Oceanic Edibles International Ltd and its directors Joseb Raj Arokiasamy, Vimalla Joseb, Arockiasamy James Walter and Arokiasamy Dominic Savio. The company and the directors had availed of credit facilities to the tune of Rs 104.2 crore.
The company ran shrimp hatchery units and established units for processing and marketing of vegetables, fruits and marine products at Marakanam, Villupuram. The company had also availed of credit facilities from SBI, IDBI, ICICI and Central Bank of India, CBI said.
Loan amounts were diverted to either their own or third party accounts or paid overseas without any genuine business as claimed and were misappropriated.
Securities pledged with the bank were not available despite being hypothecated to the banks for availing of credit.
This had caused a loss of Rs 225.2 crore which is the total outstanding owed to all banks.
According to CBI, IOB’s complaint had prima facie evidence of criminal conspiracy, fraud, cheating and corruption.
The account of this company was declared as fraud on December 20, 2019.
In internal notes, the banks noted that the company did not deposit any amount immediately after demonetisation in 2016 which raised suspicion of the genuineness of the cash balance on its books.
Transactions with a sister concern were recorded only in the books of the latter company, which, the banks noted, was a suspicious transaction.
Payments were diverted to private accounts of the directors as well.
There were other suspicious transactions including crores of rupees transferred to individuals and entities which were not related to the company’s business.
The banks also grew suspicious as electrical appliances in their office were found to be safe during 2015 floods due to a forewarning from Tamil Nadu Electricity Board, but their contention that book of accounts had been lost was untenable.