Tamilnadu businessman held in a Rs.5 crore bank fraud case in Odisha

Bhubaneswar : Economic Offences Wing (EOW) Bhubaneswar has arrested accused S.Kathiresan of Trichy (Tamilnadu) in a bank fraud case of more than Rs 5 crore.
EQW sources here today said Kadhiresan was arrested on August 8 last from Gnanaoli village
under Thuvakudi Police station of Tiruchirappalli district in on the allegation of fraud to the tune of
Rs. 5.62 crores pertaining to erstwhile Corporation Bank, Bhubaneswar.
He was produced before the Judicial Magistrate-IV, Trichinapalli on August 9 last and will be
produced before the Court of SDJM, Bhubaneswar tomorrow.
A case was registered in February 2015 on the basis of a complainant filed by the then Chief
Manager of erstwhile Corporation bank (now Union Bank of India) K N Narasimha .
Mr Narasimha in his complaint alleged that, during -2009, Kathiresan, in the capacity of Managing Director of M/s Jagannatha Financial Services Ltd. & Chief Executive Officer of M/s KAS Foundation had availed a loan amounting to Rs. 5 crores for the purpose of lending the same to the SHG/ Joint Liability Group etc.
Subsequent to sanction of Rs. 5 crores in favour of M/s Jagannatha Financial Services Ltd., the company failed to pay the installments and finally the account turned NPA on in November 2011
with outstanding balance of about Rs. 5.63 crores.
It was found that the accused company represented through its Managing Director, S. Kathiresan
had disbursed the loan to non-existent agriculturists and submitted fabricated & false documents to
the bank with criminal intention to defraud the bank and misappropriated the amount for his own use.
After registration of the case, the accused had absconded evading police arrest and finally, he
was nabbed arrested from Gnanaoli village .
UNI