HC orders CBI probe into multi-crore cheating case

The Madurai bench of the Madras High Court today ordered a CBI probe into a case related to cheating of a businessman to the tune of Rs 4.5 crore by some individuals allegedly in collusion with officials of two nationalised banks and a multi-national company.
Passing orders on a petition by K Balakumar, owner of several companies in Tamil Nadu, Justice C.Vaidhyanathan transferred the case from Central Crime Branch Police to CBI.
17 persons, including one Ganeshkumar, who was working as Manager in one of the companies of the petitioner, his relatives, bank officials and the MNC employees, are arraigned as accused in the case.

Ganeshkumar and two of his relatives had allegedly colluded with officials of a Canara Bank branch and Union Bank of India in Veerapandi in Theni district and defrauded the petitioner over a period of 3-4 months in 2010.
Madurai CCB Inspector R Vivekananthan admitted in his counter that the case involved offences allegedly committed by officials of the banks and the MNC to evade income tax. The investigation required technically qualified officials who could inquire the chain of bank transactions.
The petitioner submitted Ganeshkumar, with the help of the officials of the Canara Bank, allegedly indulged in a chain of forged transactions, opening fraudulent fixed deposits and closing them illegally, thus transferreing Rs.1.42 crore from his (petitioner's) account and swindling it. He had also allegedly used forged power agent document.

The accused had also obtained loan after opening accounts, misusing the documents of the petitioner's company, the petitioner said.

The Manager and officials of the MNC had allegedly colluded and connived with Ganeshkumar and falsified the records, committing cheating and forgery in respect of transport services offered by two companies of the petitioner--K N Carriers and Varshini Association.
They had given allegedly false declaration to the Income Tax Department, causing wrongful loss to the petitioner's company. They had allegedly cheated the Income Tax department to the tune of Rs.1.54 crore, the petitioner submitted.
The CCB was also awaiting documents from Union Bank of India, ICICI Bank, HSBC Bank, Canara Bank and the MNC's local officials, the counter said.

The petitioner sought transfer of the case to CBI saying the police were slow in taking action.