Srinivasan has been arrested for allegedly cheating a city-based businessman of Rs five crores on the pretext of helping him in getting Rs 1,000 crore loans.
52-year-old S Srinivasan, popularly known as Power Star, who is an actor, director and producer and acted in a dozen films and produced four, was arrested by Economic Offence Wing of Delhi Police from Chennai, said Harendra K Singh, Additional DCP Economic Offences Wing of Crime Branch.
According to police, Srinivasan had approached the complainant's company, Blue Coast Infrastructure Development Pvt Ltd here, in 2010 and represented themselves as consultants who would help the businessman in getting loan of Rs 1,000 crores.
The businessman was taken to Chennai for a meeting with, the actor who met him at his office at Baba Trading Company in Chennai, they said. As per condition of disbursing of loans of Rs 1,000 crores, the complainant company was required to make an upfront payments of Rs five crores.
"The upfront payment of Rs five crores was proposed to be used by the lender (actor) for purchase of special adhesive stamp calculated @0.50 per cent of the loan amount of Rs 1,000 crores," he said.
The company paid Rs five crores by a bank draft towards the refundable processing fee and a loan agreement was entered into in December 2010 between Baba trading Company and the complainant company for disbursing a loan of Rs 1,000 crores on or before January 2011.
The actor had issued post dated cheques (PDC) of a private bank against the payments of Rs five crores.
However, he neither arranged the loan nor returned Rs five crores to the businessman, police said. They said that during investigations, it came to light that the actor had duped many others using the same modus operandi.