The Central Crime Branch has arrested three men in Chennai in connection with an alleged inter-state loan fraud exceeding ₹100 crore, targeting businessmen and individuals seeking capital for industrial development. The suspects allegedly promised substantial business loans, extracted steep advance service fees, and failed to deliver the promised funding. Police acted on a formal complaint lodged by a city-based entrepreneur, leading to the detention of the primary suspect and two associates who reportedly operated across Tamil Nadu and Kerala.
Entrepreneur Cheated After Paying Heavy Advance Fees
The arrests followed an investigation into a complaint filed by Chennai businessman N. Manivannan. According to police reports, the accused approached Manivannan with assurances that they could facilitate a substantial commercial loan to finance his industrial development plans. To process the transaction, the group demanded an advance service payment.
Relying on these assurances, Manivannan allegedly paid ₹2 crore in advance and was directed to sign cheques as well as blank sheets of paper. The sanctioned funding never materialised. Instead of delivering the loan, the accused allegedly intensified pressure on the complainant, demanding additional payments and issuing threats when met with resistance. In response to the complaint, the Central Crime Branch constituted a special investigative team that arrested 48-year-old Muthuvel, also known as Muthukrishna and B.M. Chettiyar, alongside his associates B. Jagan, 44, and A. Thirukumaran, 51, late Wednesday night.
Multi-State Network Targeted Commercial Borrowers
Investigators revealed that the operation extended well beyond Chennai, generating an estimated illicit turnover of more than ₹100 crore. Operating under the guise of financial intermediaries, the syndicate allegedly offered to connect prospective borrowers with banking institutions and facilitate large approvals in exchange for hefty commissions and upfront charges.
Multiple complaints and criminal cases have already been lodged against the syndicate across Tamil Nadu, including at police stations in Dharmapuri, as well as in Kerala. Police are reviewing the financial paper trail to determine whether the accused maintained any genuine ties with legitimate lending institutions or simply relied on fraudulent paperwork to entrap victims. Forensic accounting teams are currently tracking the flow of funds to discover where the extracted money was transferred, while investigators reach out to other enterprises approached by the group.
Court Remands Trio as Police Issue Advisory
Following their apprehension, the three accused were produced before a local court, which remanded them to judicial custody pending further interrogation. Officers are reviewing earlier criminal records registered against the trio to evaluate the full scale of the operation and establish links between unresolved complaints across state borders.
In light of the arrests, the Chennai police commissioner urged the public and business owners to deal exclusively with formal banking channels when seeking credit. Authorities warned borrowers against engaging intermediaries who demand upfront commissions for facilitating financial approvals. The commissioner emphasised that loan applicants should never hand over signed blank documents or cheques, cautioning that dealing with unverified agents exposes enterprises to severe financial hazards. Police continue to record statements from prospective victims as the investigation moves forward.
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