The CBI’s FIR is based on a complaint from the Bank of Baroda’s Chennai regional office. It alleges that a partnership firm, Monica Co Products—established in 2020 by K Pavalabalan and G Palanivel—took a loan of ₹7.6 crore in September 2021. The loan was secured by mortgaging 23 vacant land plots in Adhanoor and Orathoor villages, used as collateral.
However, trouble started when the bank noticed discrepancies during audits. A preventive vigilance audit in December 2022, followed by a zonal inter-departmental audit in July 2023, revealed that the title deeds and layout plans submitted for these properties were fabricated.
Alleged Collusion With Valuer and Advocate
The bank’s internal audits further found that the fraudulent documents were allegedly prepared in collusion with Malaivel Sugumaran, an empanelled valuer, and C Ramesh, an empanelled advocate. This raises serious concerns about the integrity of professionals involved in the loan approval process.
The alleged fraud is believed to have taken place with assistance from unnamed civil servants, who are also mentioned in the FIR. The bank declared the loan account a fraud after a detailed forensic audit and reported the matter to the Reserve Bank of India (RBI) on November 7, 2023.
Loan Turned NPA Amid Default
The account turned into a non-performing asset (NPA) in August 2023 due to non-payment of interest. Following standard procedures, the bank initiated an internal investigation, which confirmed the fraud and irregularities in documentation. This led to the formal complaint being submitted to the CBI.
After receiving the required permissions from the Tamil Nadu government—since the state had withdrawn general consent to the CBI in 2023—the central agency registered a case on June 17, 2025.
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FIR Registered Under Multiple Charges
Based on the findings, the CBI has registered an FIR under various sections of the Indian Penal Code and Prevention of Corruption Act, including charges of criminal conspiracy, forgery, fraud, and cheating. Those named in the FIR include:
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K Pavalabalan
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K Radha
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G Palanivel
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Monica Co Products
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Malaivel Sugumaran (valuer)
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C Ramesh (advocate)
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Unknown civil servants
The case highlights ongoing vulnerabilities in bank lending processes, particularly when land and property documents are used as collateral without thorough independent verification. Further investigation is underway.