Chennai: A major financial fraud case linked to the banking sector has come to light, with the Central Bureau of Investigation (CBI) registering a case against a textile company, its former promoters, and bank officials in connection with a ₹11.97 crore loan fraud. The action follows a complaint by IDBI Bank, alleging that the company fraudulently availed loans and diverted the funds for unauthorised purposes.
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The case originated from a complaint filed at IDBI Bank’s Saidapet branch in Chennai by the General Manager of the NPA Management Group. According to the complaint, Sri Lakshmi Saraswathi Spintex Limited and its former senior executives allegedly used false and misleading information to secure multiple credit facilities from the bank.
Former Company Officials and Unknown Bank Staff Named
In the FIR registered by the CBI, former officials of the company—B Sarath Chandra, CS Aditya Praveen, and S Naveen Chandra—have been named as accused. Additionally, unknown public servants of IDBI Bank and other private individuals have also been included in the investigation. The agency suspects that the fraud may involve internal collusion within the banking system.
As per the complaint, after securing the loans, the accused did not utilize the funds for their intended purposes. Instead, the money was allegedly diverted and misappropriated, resulting in a wrongful loss of ₹11.97 crore to the bank. The loan account was declared a Non-Performing Asset (NPA) on February 28, 2019, and was subsequently classified as a fraud account by IDBI Bank.
Fund Diversion and Alleged Misuse Under Scrutiny
Investigations reveal that the accused misled the bank during the loan approval process by submitting fabricated or exaggerated documents to establish eligibility. Once the funds were disbursed, they were routed through multiple accounts and channels to obscure their actual usage and prevent detection.
The CBI has invoked charges including criminal conspiracy, cheating, and criminal misconduct by public servants under the Prevention of Corruption Act. The probe will focus on identifying lapses in the loan sanctioning process and determining whether bank officials knowingly facilitated the fraudulent transactions.
Probe to Trace Money Trail and Possible Collusion
The case highlights the growing concern over rising NPAs and corporate frauds in the banking sector. When companies obtain large loans through fraudulent means and fail to repay them, the impact extends beyond financial institutions to the broader economy and public trust.
The investigation will now examine the trail of funds, including the accounts through which the money was transferred, and whether shell companies were used to layer transactions. Authorities are also expected to probe the role of any external entities or intermediaries who may have assisted in executing the fraud.
