TN: ED conducts raids against private firm over PMLA case

Chennai: The Enforcement Directorate (ED) on Saturday conducted raids at nine places in Tamil Nadu in connection with a Rs 90-crore Prevention of Money Laundering Act (PMLA) case against Indhumathi Refineries Private Limited (IRPL).

Searches were conducted at premises of R.Shenbagan – who manages the private limited company – and his associates in Chennai, Virudhunagar, Madurai and Coimbatore.

The company was “enjoying Cash Credit facilities, Letter of Credit facilities and Term Loan from State Bank of India (SBI), Overseas Branch, Chennai,” sources said.

“IRPL had availed a total of 46 Letters of Credit from the SBI, which were issued against bogus firms/fake invoices for a value of around Rs 87.36 crore which was devolved on the bank later due to insufficient funds in their account and also diverted the business proceeds which resulted into a pecuniary loss of around Rs 90 crore to SBI,” sources added.

Earlier, SBI had filed a complaint with the Central Bureau of Investigation (BS and FC), Bangalore who registered an FIR, conducted an investigation and later filed a charge sheet against IRPL, R.Shenbagan, R.Rajan, Raji Shenbagan, Thirumagal Rajan and few employees of IRPL and the State Bank of India among others.

The case involved contraventions of Sections 120B, 420, 467, 471 of the Indian Penal Code (IPC) 1860 and 13(2) read with Section 13(1)(d) of Prevention of Corruption Act 1988 which are scheduled offences under PMLA 2002. ED registered a PMLA case under Prevention of Money Laundering Act 2002.

During the course of the investigation, the directors/partners of IRPL – R.Shenbagan, R.Rajan, S.Raji and R.Thirumagal – did not disclose the details of the financial transaction, properties involved and the bank accounts.

[source_without_link]ANI[/source_without_link]