Former AIADMK MP chargesheeted in multi-crore cheating case

Former AIADMK MP K C Palanisamy was today chargesheeted by Chennai Central Crime branch police in a Rs 75 crore misappropriation case, for allegedly cheating a Singapore citizen to invest the amount in a Mauritius based firm to set up a hotel and IT park project in Coimbatore.
The chargesheet, laid before the Chief Metropolitan Magistrate at Egmore, named 14 accused, eight of which are companies, including Cherraan Constructions Limited and Cheran Foundation Trust.
CCB alleged that R Athappan, a Singaporean, was 'induced' by Palanisamy in 2004 to invest Rs 75 crore as share capital in a Joint Venture company.The idea was to develop 26 acres of immovable property, worth Rs 100 crore, in Coimbatore and build a hotel and an IT park.

In spite of the fact that the JV made it clear Palanisamy could not withdraw money from banks without the consent of one Chandran Ratnaswami, he did not reveal it while withdrawing/ transferring huge sums to other accounts or to himself, the CCB said.
Later he had also tried to transfer immovable land from the possession of the JV company, CCB said, adding he had committed offences punishable under IPC Sections 465 (punishment for forgery), 468 (forgery for purpose of cheating), 471 (using as genuine forged documents), 477-A (falsification of account), 420 (cheating) and 423 (fraudulent removal or concealment of property).

CCB said that as per Clause 4 of the January 30 2004 JV agreement, the amount was to be used for development of immovable properties owned by Cheran Properties Limited and Vasantha Mills Limited, Coimbatore.
The chargesheet said that while on the one hand Palanisamy 'misappropriated' all monies invested in the firm, he colluded with three others, all directors, and attempted to cheat the company and cause loss to it by transferring the immovable assets to Cherraan Constructions Limited, "which is nothing but the alter ego of Palanisamy, for paltry sums of money.