CHENNAI: The Enforcement Directorate (ED) conducted searches at seven locations in Chennai on Tuesday in connection with a Rs 311-crore bank fraud involving Thangam Steel Ltd (TSL), PS Krishnamurthy Steels Private Ltd (PSK), their directors and key associates.
During the raids, officials allegedly seized incriminating documents and electronic records, and identified 43 immovable properties allegedly held in benami names, valued at more than Rs 100 crore.
According to ED, the case is based on two FIRs registered by the CBI’s Economic Offences Branch in Chennai alleging cheating and fraud against SBI. Investigators alleged that the companies and their directors, engaged in steel manufacturing and trading, secured enhanced credit facilities between 2007 and 2013 using forged financial statements.
ED said the accused allegedly diverted bank funds through shell entities, circular trading and layered transactions to conceal the money trail. Investigators also alleged that false balance sheets, fictitious godowns and fake transport records were used to misrepresent the companies’ financial position before banks and regulatory authorities.
