CHENNAI: The Enforcement Directorate conducted searches at nine places in Virudhunagar, Madurai, Coimbatore and Chennai on Saturday after Indhumathi Refineries (IRPL), a Virudhunagar-based company came under scanner for its alleged bank loan fraud to the tune of `90 crore.
It is learnt that the IRPL had availed 46 letters of credit from the SBI, which were issued against bogus firms or fake invoices for a value of around `87.36 crore which was devolved on the bank later due to insufficient funds in their account. They also diverted business proceeds which resulted in a pecuniary loss of around `90 crore to the SBI, sources said.
The bank had filed a complaint with the CBI in Bengaluru, who registered an FIR, conducted investigation and filed charge-sheet against IRPL, and its directors and partners - R Shenbagan, R Rajan, Raji Shenbagan, Thirumagal Rajan and few employees of IRPL and State Bank of India, among others.
ED sources said that R Shenbagan, R Rajan, S Raji, and R Thirumagal did not disclose the details of financial transactions or properties involved and the bank accounts as such the searches were carried out.