The Central Bureau of Investigation (Economic Offences Wing), Chennai, on Monday registered a case against the managing director and four directors of a private company and unknown public servants for obtaining loan from Indian Overseas Bank, Fairlands Branch, through fraudulent means.
In her complaint, N. Vijaya, Chief Regional Manager, IOB, Regional Office, Coimbatore, said that S. Durairaj, managing director, Subashri Bio Energies Private Limited, along with directors D. Malliga, Salaisivaprakasam, Nalla Govindasamy and G. Saraswathy, had conspired with unknown public servants and fraudulently availed term loans and cash credit limits for establishing poultry litter based power generation project sponsored by the Ministry of Non-Conventional Energy Sources.
They also misappropriated the loan funds and diverted the funds causing loss to the tune of ₹ 62.20 crore to the bank.
The account was declared as a non-performing asset due to non-service of interest and non-payment of term loan instalments. The account was declared as fraud and was reported to the Reserve Bank of India in 2019.
Based on inquiries, a case under Sections 120-B r/w 420 and 409 of IPC and Section 13(2) r/w 13 (1) (d) of Prevention of Corruption Act, 1988, was registered.
