The Enforcement Directorate conducted a series of raids in 9 locations in Tamil Nadu in relation to a bank loan fraud case which is worth 90 Crores involving a company named Indhumathi Refineries Private Limited (IRPL). The raid was conducted in the premises of the company which allegedly caused a loss of approximately 90 Crores to the State Bank Of India(SBI).
IRPL was enjoying Cash Credit facilities, Letter of Credit(LOC) facilities as a well as term loan from State Bank Of India overseas branch in Chennai. It has availed a total of 46 LOC that were issued against bogus firms/fake invoices for a value of around 87.36 Crores which was then devolved on the bank due to insufficient funds in their account and also deviated the business proceeds which resulted into a financial loss to State Bank Of India.
The company is managed by directors named Shenbagan Raji and Ravindren Shenbagan. Residential and business premises linked to him are being raided by the officials. Searches were conducted at Virudhunagar, Madurai, and Coimbatore in Tamil Nadu. A criminal case is registered under the Prevention of Money Laundering Act(PMLA) based on a CBI FIR and charge sheet has been filed against R Shenbagan and others linked with the case.