KASARGOD: The Crime Branch has arrested movie producer Mahfoose MD of Kasaragod for duping South Indian Bank of Rs 4.17 crore.
Mahfoose's arrest comes on the eve of his movie Sayanna Varthakal hitting theatres. Actor Suresh Gopi's son Gokul Suresh and Dhyan Sreenivasan are starring in the movie.
Mahfoose, a resident of Chattanchal, has been remanded in custody.
He had taken a loan of Rs 4.17 crore from South Indian Bank's Cherkala branch in 2018 by deceit and had defaulted, said an officer of the Crime Branch.
Mahfoose, who is also a civil contractor, owns two acres in Manjeshwar police limits but the property is hardly worth Rs 1 lakh (Rs 500 per cent), said the officer.
He showed the documents of his land to get clearance from the bank's lawyer but showed the title deed of another property to the bank for valuation. "We suspect the role of the bank manager too in the fraud," he said.
The bank had suspended the branch manager Febin of Kannur, pending enquiry.
The bank had initially filed a cheating case against the producer in Vidyanagar police station. The case was then handed over to Crime Branch.
During the course of investigation, the Crime Branch found that he had taken another loan of Rs 4 crore from IDBI's Kasaragod town branch, and a Rs 10 crore loan from Kerala Finance Corporation's Kasaragod town branch in 2017-2018, said the officer, who is part of the investigation. "IDBI and KFC have not filed any complaint so we have not delved into that. But we know that he did not repay them either," he said.
For the loan from IDBI, Mahfoose used the same documents he furnished at South Indian Bank, he said.
Following the complaint from South Indian Bank, the Crime Branch has charged Mahfoose under Sections 420 (cheating), 465 (forgery) and 471 (using forged documents as genuine) of the Indian Penal Code.